;v.t^-.i,-»    -        ^   '       V  ^. 


H  G 

1918. 


UC-NRLF 


B    3    5^0    650 


EXCHANGE 


'    '    M    I      ii!'.'    .'■*'  '■ 


STATE  OF  MICHIGAN 


REPORT  OF  THE 


^chigan  Securities  Commission 


AUGUST  15,  1913  to  JUNE  30,  1918. 


BY  AUTHORITY 


FORT    WAYNE    PRINTING    COMPANY 

CONTRACTOR*    FOR    MICHIGAN    STATE    PRINTING    AND    BINDING 

FORT    WAYNE.    INDIANA 

I9IS 


STATE  OF  MICHIGAN 


REPORT  OF  THE 


Michigan  Securities  Commission 


AUGUST  15,  1913  to  JUNE  30,  1918. 


BY  AUTHORITY 


eXCHAW** 


-.'»"' 


LETTER  OF  TRANSMITTAL. 

To  the  Uonorable  Albert  E.  Sleeper,  Governor. 

Sir: — We  have  the  honor  to  transmit  herewith  the  first  report  of  the 
Michigan  Securities  Commission  for  tlie  period  beginning  August  15. 
11)13,  being  the  date  of  the  Commission's  organization  under  tlie  ju-o- 
visions  of  the  original  Act  (Act  No.  U3,  Public  Acts  of  1913),  and  ending 
June  30,  1918. 

FRANK  W.  MERRICK, 
SAMUEL  ODELL, 
ALEX.  J.  GROESBECK, 
Members  of  the  Commission. 


5826  l(] 


TABLE  OF  CONTENTS. 

I'age 

Letter  of  Transmittal :>, 

lutroduetion 7 

Membership  of  the  Commission,  Ofliciirs  and  Employees '.I 

To  the  Investor II 

To  the  Investment  Company  and  Broker 12 

The  Michigan  "Blue  Sky  Law" 1  ;{-'i'J 

Vahdity  and  ConstitutionaHty  of  the  "Act" 2\\ 

Rules  and  Regulations  of  the  Michigan  Securities  Commission 24-27 

GENERAL  REPORT: 

Membership  and  Organization 2S 

Securities 28-29 

Procedure  Applicant  Must  FoUow 29-30 

Pi'oeedure  by  Department 30 

Examination  and  Investigation  of  Investment  Companies 30-3 1 

Hearings  on  Applications 31 

Examination  of  Companies  after  Approval 31-32 

Amount  of  Securities  Approved  and  Disapproved  by  the  Commission 32-33 

Seciu-ities  Escrowed  with  the  State  Treasurer  by  order  of  the  Commission .  33 

Advertising  of  Securities 34 

Complaints  and  Prosecutions 34-35 

Registration  and  Licensing  of  Dealers  and  Agents 35-30 

Financial  Report 37-39 

Reeonimendatious  for  Amendments  to  the  Act 40 

Investment  Companies  Approved  by  the  Commission,  List  of 41-54 

Bond  Issues  Approved  by  the  Commission,  List  of o5-5() 

Investment  Companies  Disapproved  by  the  Commission,  List  of 50 

Investment  Companies  whose  licenses  have  been  revoked.  List  of 57 

Investment  Companies'  Applications  Withdrawn,  List  of 57-58 

Registered  and  Licensed  Dealers,  List  of 58-(J3 

Escrowed  Stock,  List  of  Companies  showing  purpose,  consideration  and  Par 

Value  of  Stock  Escrowed 04-05 

Escrowed  Stock  Released,  List  of  Companies  and  Amount 05 

Bulletins  Issued  for  Distribution 00 


8  \   ;    /.  :.  ;     . ;  ■     ;     first  report 

sented  in  this  organization  are  thirty-two  states  actively  enforcing  Blue 
Sky  Laws.  Conferences  of  committees  of  the  national  organization  have 
been  held  with  the  Capital  Issues  Committee,  looking  to  the  enforcement 
of  the  Federal  Act  and  for  the  purpose  of  establishing  an  active  working 
relationship  between  the  several  State  Securities  Commissions  and  the 
Federal  Government,  in  tlie  i>rotection  of  the  investing  public. 

WILLIAM  R.  GATES, 

Executive  Gfflcer. 


iMICHKlAN  Ir^ECUIUTlES  (M)MxMJSSlON. 

Hox.  FuAiXK  ^y.  JVLerrick,  Cliaii-iuau Tij^eoii,  Micli. 

Commissioner  of  the  Banking  Department. 

Hon.  Samuel  Odell Shelby,  Mich. 

State  Treasurer. 

Hon.  Alex.  J.  Guoesbeck Detroit,  Mich. 

Attorney  General. 


William  K.  Gates Executive  Gmcer 

Harry  Glmstead Accountant 

Glen  K.  Munshaw Examiner 

William  K.  Town Examiner 

Alice  E.  Alexander Chief  Clerk 

KiTTiE  S.  AiNGER Fiuanciiil  Clerk 

Pauline  P.  Mosier Slenograplier 

Charlotte  Dougherty Filing  ( Merk 

Claire  Palmer    Stenographci- 

Russell  Brown :Mcss('iig('r 


TO  THK   INVESTOK. 

Do  you  realize  that  tlie  Miclii^iaii  Le*;islatiii'e,  in  the  oiiactnicnt  of  wliat 
is  commonly  referred  to  as  the  "Bine  Sky  Law,""  and  in  creatinj:;  a  Secnri- 
ties  Commission  which  should  have  charge  of  the  administration  and 
enforcement  of  such  a  law,  ])rovided  the  investing  public  with  the 
nrachiuery  which  would  assure  them  accurate  infornuition  concerning 
their  investments? 

Do  you  realize  the  im])oi-tance  to  the  investing  public  of  the  fact  that 
through  the  administration  of  this  law  over  two  hundred  million  dollars 
worth  of  (juestionable  securities  have  been  precluded  from  sale  in  Mich- 
igan? Perhai)s  you  would  have  been  an  investor  in  some  of  those  securi- 
ties had  they  been  admitted  to  sale  in  this  State, 

Do  5'ou  realize  that  it  is  mit  alone  the  privilege  of  every  investor  but  a 
duty  as  well  to  inform  himself  as  fully  as  ]tossible  before  the  purchase  of 
any  security?  He  should  first  determine  whether  or  not  the  company  in 
which  he  contemplates  investing  has  made  ai>plication  to  the  Michigan 
Securities  Comnussion,  has  been  examined  and  its  securities  approved. 
He  should  also  ascertain  whether  or  not  the  dealer  or  his  agent,  who 
may  be  handling  the  security,  has  been  <luly  an<l  lawfully  i-egistered  with 
the  Commission  and  licensed  to  sell  such  securities. 

The  Commission  does  not  guarantee  nor  recommend  the  purchase  (»f 
any  security,  even  of  the  coni])any  which  has  ]>assed  a  rigid  examination 
and  receive<l  its  ai)i)r(>val,  but  it  is  reascmable  to  assume  that,  as  a  result 
of  the  investigation,  the  Commission  is  of  the  belief  that  the  eiiterpiisc 
is  bona  tide  and  that  tiie  sab'  of  its  securities  would  not  v>ork  a  fraud  on 
the  public. 


12  FIRST  REPORT 


TO  THE  INVESTMENT  COMPANY  AND  BROKER. 

The  legislation  commonly  referred  to  as  the  "Blue  Sky  Law"  was  at 
first  received  with  bitter  hostility,  but  since  its  operations  have  been 
understood  it  has  commanded  respect  and  even  enthusiasm.  The  raw 
swindler  and  "get  rich  quick"  promoter  takes  one  look  at  the  require- 
ments, and  as  a  rule  departs  to  other  fields  less  carefully  guarded.  The 
general  effect  of  the  law  has  been  that  not  only  legitimate,  or  such 
schemes  which  in  the  honest  personal  opinion  of  the  applicant  are  legiti- 
mate, ever  attempt  to  get  by. 

The  advantages  to  legitimate  business  under  this  Act  become  apparent 
to  the  approved  applicant  as  soon  as  he  starts  to  market  his  securities. 
To  begin  with  the  unscrupulous  competition  of  the  faker  has  been  elimi- 
nated or  greatly  restricted.  The  fact  that  the  project  has  been  approved 
after  a  thorough  investigation  and  examination  by  the  Commission 
(although  it  is  stated  in  the  permit  that  the  security  is  not  recommended, 
although  approved )  gives  the  security  an  immediate  standing  with  the 
investor.  The  only  trouble  has  been  that  at  first  the  public  was  inclined 
to  assume  that  an  approval  carried  a  guarantee  against  loss. 

Statements  without  number  are  of  record  by  successful  applicants  that 
when  first  faced  witli  the  requirements  of  the  Act  they  were  inclined  to 
feel  that  they  were  unreasonable,  needlessly  severe,  and  costly,  but  that 
having  successfully  complied  with  such  requirements  and  passed  inspec- 
tion, they  had  found  that  the  approval  of  the  Commission  was  of  inestim- 
able advantage  to  them,  not  only  within  the  State  but  outside,  and  that 
these  advantages  were  worth  to  them  many  times  the  cost  and  trouble 
entailed  in  obtaining  the  approval  of  their  securities  and  permission  to 
sell  them  in  a  legitimate  and  lawful  manner. 


"BLUE  SKY  LAW." 


Securities 
commission. 


Successor  of 

present 

commission. 


Files,  papers, 
etc. 


Proceedings 
saved. 


Office  in 
capltol. 


AN  ACT  to  prevent  fraud  in  the  sale  and  disposition  of 
stocks,  bonds  or  other  securities  sold  or  otfered  for  sale 
within  the  State  of  Michigan  bv  any  dealer,  firm,  company, 
association  or  corporation,  foreign  or  domestic,  by  requir- 
ing an  inspection  of  such  stocks,  bonds,  or  other  securities 
and  an  inspection  of  the  business  of  such  persons,  firms, 
companies,  associations  or  corporations,  including  dealers 
and  agents,  and  snch  regulation  and  supervision  of  the 
business  of  said  persons,  firms,  companies,  associations,  or 
corporations,  including  dealers  and  agents,  as  may  be  neces- 
sary to  prevent  fraud  in  the  sale  within  the  State,  of  any 
stocks,  bonds  or  other  securities,  and  to  provide  a  penalty 
for  the  violation  thereof,  and  to  repeal  act  number  one 
hundred  forty-three  of  the  Public  Acts  of  nineteen  hundred 
thirteen,  approved  May  two,  nineteen  hundred  thirteen, 
and  all  other  acts  or  parts  of  acts  inconsistent  herewith. 

[Act  No.  46,  p.  A.  1915.] 

The  People  of  the  State  of  Michigan  enact: 

Section  1.  There  is  hereby  created  a  commission  to  be 
known  as  the  Michigan  Securities  Commission  and  hereafter 
called  in  this  act  ''the  commission,"  whose  duty  it  shall  be  to 
administer  and  provide  for  the  enforcement  of  all  tlie  provi- 
sions of  this  act.  Said  commission  shall  consist  of  the  Com- 
missioner of  the  State  Banking  Department  who  shall  be 
president  thereof;  the  State  Treasurer  of  the  State  and  the 
Attorney  General  of  the  State,  all  of  whom  shall  be  mendiers 
of  said  commission  during  their  respective  terms  of  office  and 
any  two  of  whom  shall  constitute  a  quorum.  The  said  com- 
mission shall  succeed  tlie  ^Michigan  securities  commission 
created  by  act  one  hundred  forty-tliree  of  the  Public  Acts  of 
nineteen  hundred  thirteen,  and  as  sucli  successors  shall 
receive  all  of  the  files,  papers  and  proj)erty  of  said  Michigan 
securities  commission  created  l)y  said  act  one  hundred  forty- 
three  of  the  Public  Acts  of  nineteen  hundred  thirteen.  All 
proceedings  pending  before  .said  Michigan  securities  commis- 
sion created  by  said  act  one  hundred  forty-three  of  the  Public 
Acts  of  nineteen  hundred  thii'teen  shall  be  continued  by  the 
commission  created  l)y  this  act;  all  actions,  civil  and  criminal, 
pending  under  said  act  one  hundred  forty-three  of  the  Public 
Acts  of  nineteen  hundred  thirteen  shall  be  continued  and  com- 
plete<l  thereunder.  Said  comnii.^sion  shall  have  its  ollice  in 
the  capitol  in  the  city  of  Lansing,  in  rooms  to  be  provided  by 
the  Board  of  State  Auditors,  and  all  of  its  records  shall  be 


14 


FIRST  REPORT 


there  kept.  It  shall  hold  a  regular  meeting  on  the  first 
Friday  of  each  month  and  may  hold  special  meetings  npon  the 
call  of  the  president.  It  shall  keep  a  complete  record  of  all  its 
meetings,  its  accounts  and  the  business  it  transacts.  It  shall 
appoint  a  secretary  whose  salary  sliall  not  exceed  the  sum  of 
twenty-five  hundred  dollars  per  annum  and  sliall  have  power 
to  employ  such  other  and  further  assistants  as  may  be  neces- 
sary to  carry  out  the  provisions  of  this  act.  All  salaries  fixed 
by  it  shall  be  subject  to  the  approval  of  the  Board  of  State 
Auditors.  It  shall  make  such  rules  and  regulations  as  may  be 
necessary  to  carry  out  the  provisions  of  this  act  and  may  pre- 
pare all  necessary  blanks  to  be  used  in  its  proceedings  and  in 
the  conduct  of  its  business. 

Sec.  2.  Every  person,  corporation,  co-partnership,  com- 
pany, or  association,  except  those  exempt  under  the  provi- 
sions of  this  act,  organized,  or  which  shall  hereafter  be  organ- 
ized in  this  State,  whether  incorporated  or  unincorporated, 
which  shall  either  himself,  themselves  or  itself,  or  by  or 
through  others,  sell  or  negotiate  for  the  sale  of  any  stocks, 
bonds  or  other  securities  issued  by  him,  them  or  it  within  the 
State  of  Michigan,  shall  be  known  for  the  purposes  of  this  act 
as  a  domestic  investment  company.  Every  such  person,  cor- 
poration, co-partnership  or  association  resident  of  or  organ- 
ized in  any  otlier  state,  territory  or  government,  shall  be 
known  for  the  purpose  of  this  act  as  a  foreign  investment 
company. 

Sec.  3.  The  provisions  of  this  act  shall  not  apply  to  (a) 
securities  of  the  United  States,  or  any  foreign  government,  or 
of  any  state  or  territory  thereof,  or  of  any  county,  city,  town- 
ship, district  or  other  public  taxing  subdivision  of  any  state 
or  territory  of  the  United  States,  or  of  any  foreign  govern- 
ment; (b)  unsecured  commercial  paper;  (c)  securities  of 
public  or  quasi  public  cor])orations,  the  issue  of  which  securi- 
ties are  regulated  by  the  Michigan  Railroad  Commission  or 
by  a  public  service  commission  or  board  of  equal  authority 
oif  any  state  or  territory  of  the  United  States  or  securities 
senior  thereto;  (d)  securities  of  state  or  national  banks  or 
trust  companies,  or  building  and  loan  associations  of  this 
State;  (e)  securities  of  any  domestic  corporation  organized 
witliout  capital  stock  and  not  for  pecuniary  gain,  or  exclu- 
sively for  educational,  benevolent,  charitable  or  reformatory 
purposes;  (f)  mortgages  upon  real  and  personal  property 
situated  within  this  State  where  the  entire  mortgage  is  sold 
and  transiVn-ed  with  the  note  or  notes  secured  by  such  mort- 
gages; (g)  increase  <d"  stock  sobl  and  issue<l  to  stockholders, 
also  stock  dividends;  (h)  secm-ities  wliich  are  liste<l  in  any 
standard  manual  of  inforniatiou  ai»i>roved  l>y  said  commis- 
sion :  Proviilcd,  however.  That  said  commission  shall  have  the 
power  to  call  for  additional  and  further  information  than 
that  contained  in  such  manuals  with  reference  to  any  securi- 
ties listed  therein,  and  may,  pending  the  filing  of  such  infor- 
mation, suspend  the  sale  of  such  securities,  and  also  suspend. 


Meetings. 
Record. 
Secretary  and 


Rules  and 
regulations. 


Domestic  in- 
vestment 
companies. 


Foreign  in- 
vestment 
companies. 


Exemptions. 


Proviso,  sus- 
pension of 
sale  of 
securities. 


MICHIGAN  SECTTRITIES  COMMISSIOX 


15 


Conditions  of 
sale  of  stock, 
etc. 


Statement  to 
be  filed. 


Contents  of 
statement. 


.\rticles  of  co- 
partnership, 
etc. 


Articles  of  in- 
corporation, 
etc. 


Charter  and 
certificate. 


F'rovi 
limit. 


How  papers 
verified. 


cither  temporarily  ov  peniumciitlx ,  I  lie  sale  of  any  s<'(uri(i('.^ 
listed  in  such  manuals  alter  a  iicariiij^  ui)()M  nolicc  to  the 
issuer  of  such  securities  if  said  coniiMissiou  sliall  find  tliat  the 
sale  of  such  securities  would  work  a  fraud  u|(ou  tlie  pnr 
chasers  thereof;  (i)  all  stocks,  bonds  and  securities  a])i)roved 
by  the  Michi<!,an  securities  comniission  creatiMl  by  act  (Uic 
hundred  forty  three  of  the  Tnblic  Acts  of  ninrteen  liumlrcd 
thirteen. 

Sec.  4.  Before  selling,  olferiu";  for  sale,  takin<f  subscrij)- 
tions  for,  or  ue.ii,<)tiatinj2;  for  the  sale  in  any  manner  whatever 
in  this  State,  any  stocks,  bonds  av  other  securities  of  its  own 
issue,  every  investment  company,  domestic  or  foreign,  shall 
tile  in  the  office  of  the  commission  a  statement  sliowing  in 
full  detail  the  plan  upon  which  it  proposes  to  transact  busi- 
ness; a  copy  of  all  contracts,  stocks,  l»on<ls  or  othei-  instru- 
ments which  it  proposes  to  make  with,  or  sell  to,  its  contribu- 
tors or  customers,  toii'ether  with  a  co])y  of  its  prospectus,  and 
of  the  proposed  advertisement  of  its  sale  of  stocks,  bonds, 
or  other  securities  which  statement  shall  also  show  tlie  name 
and  location  and  main  office  of  the  investment  company;  the 
names  and  addresses  of  its  officers,  and  an  itemi/AMl  account 
of  its  financial  condition  and  the  amount  of  its  assets  and 
liabilities,  and  such  other  information  touching  its  conditions 
and  affairs  as  the  commission  may  reipiire.  If  such  invest 
ment  comiiany  shall  be  a  co-i)artnershi))  or  an  uninc<»i-i)oiat<'<l 
association  it  shall  also  tile  with  the  commission  a  copy  of  its 
articles  of  co-pa rtiiershi])  or  association,  and  all  otiier  i)apeis 
l)ertaining  to  its  organization.  If  it  be  a  c(U'])oration  organ 
ized  under  the  laws  of  Michigan  it  shall  also  file  with  the 
commission  a  coi)y  of  its  articles  of  incoi-poration,  const  it  n- 
tion  and  by-laws,  and  all  other  papers  pertaining  to  its  organ 
ization.  If  it  shall  be  an  investment  company  organi/A'd 
under  the  laws  of  any  other  State,  territory  or  governnu'ut. 
iiicor])orated  or  unincorporated,  it  shall  also  tile  with  the 
commission  a  copy  of  the  laws  of  thn  state,  territory,  or  gov 
ernment  under  wliicli  it  exists  or  is  inc()i-i>orate(l.  and  also  a 
copy  of  its  charter  and  the  certificate  of  tlie  i)roper  officer  of 
sucii  state  showing  tliat  it  is  authorized  to  transact  busint'ss 
there;  and  also  co])i<'s  of  its  constitution  and  bylaws,  and 
all  anicndments  of  any  of  thf  above  inenlioiicd  instruments 
whicii  have  been  nnnii',  ami  all  other  |»apers  ]»ertaining  to 
its  organization.  It  sliall  also  p.-iy  a  liliiig  lee  of  onetenth  of 
one  per  cent  npoii  the  lace  \alne  of  the  secnrilies  lor  the  sale 
;  nia.le:     I'r 


of  wh 
tiling 
than 
Si;( 
bv  th 


be 


lei 


app!i<ali 
shall  not 
dollars. 
All  of  the  al 
th  of  a  niembe 


■iilnl,  I, 

IhhkI 


•e.l   .1. 


it  be  a  eo  paitneiship  or  (•(.nipany, 
authorized  oilicer.  if  it  be  a  cor]»or 
association.  All  such  papers,  how 
oil  file  ill  any  public  ollice  shall  be  further  certilie<l  by  the 


ed   papers 

•arlnershii 

and  by  th 

ilion  oi-  an 

'ver  as  are 


■rr,  'i'hat  such 
.ll.irs.  nor  le.s:^ 

■;|iall  l>e  \erilie<| 
I  or  eoinp;in\-.  if 
■  oalh  ..r  a  .'inlv 
nnineorpor.iled 
recorded  or  are 


16 


FIRST  REPORT 


officer  of  whose  records  or.arcliives  they  form  a  ]>art,  as  being 
correct  copies  of  sucli  records  or  archives. 

Sec.  0.  P^very  foreign  investment  company  before  offering 
for  sale  any  of  its  stock,  bonds  or  other  secnrities  in  this 
State  shall  also  file  its  irrevocable  written  consent  that  suits 
and  actions  may  ))e  commenced  against  it  in  the  proper  court 
of  any  county  in  this  State  in  which  a  cause  of  action  may 
arise  or  in  which  tlie  plaintiff  may  reside,  by  tlie  service  of 
any  process  or  pleading  autliorized  by  the  laws  of  this  State, 
on  the  Commissioner  of  the  State  Banking  Department,  said 
consent  stipulating  and  agreeing  that  sucli  service  of  such 
process  or  pleadings  on  such  commissioner  shall  be  taken  and 
held  in  all  courts  to  be  as  valid  and  binding  as  if  due  service 
had  been  made  upon  tlie  company  itself,  and  said  instrument 
containing  such  consent  shall  be  authenticated  by  the  seal  of 
said  foreign  investment  comi)any,  and  by  the  acknowledged 
signatnre  of  a  member  of  the  co-])artnersliip  or  company,  if  it 
be  a  co-partnership  or  company,  or  by  the  acknowledged  sig- 
nature of  the  president  and  secretary  of  the  incorporated  or 
unincorporated  association,  if  it  be  an  incorporated  or  unin- 
corporated association,  and  shall  in  such  case  be  accom- 
panied by  a  duly  certified  copy  of  the  resolution  of  the  board 
of  directors,  trustees  or  managers  of  the  corporation  or  asso- 
ciation, authorizing  the  secretary  and  ])resident  to  execute 
the  same.  In  case  any  process  or  pleadings  mentioned  in  this 
act  are  served  n])on  the  Commissioner  of  the  State  Banking 
l)ei)artment,  it  shall  be  by  dnidicate  copies,  one  of  which  shall 
be  tiled  in  the  office  of  the  Michigan  Securities  Commission 
and  another  inunediately  forwarded  by  registered  mail  to  the 
head  office  of  the  person  or  corporation  against  which  said 
process  or  pleadings  are  directed. 

Sec.  7.  Said  application  shall  be  heard  by  the  said  commis- 
sion at  the  next  regular  meeting  after  said  application  is  filed 
(providing  such  filing  shall  precede  such  monthly  meeting  by 
twenty-four  hours),  or  at  a  special  or  adjourned  meeting  of 
said  commission,  but  if  such  application  is  heard  at  a  special 
or  adjourned  meeting  of  said  commissi<ni  the  secretary  shall 
give  snch  applicant  at  least  two  days  notice  of  such  hearing. 
Said  commission  may  liave  i)<>wer  to  adjourn  such  hearings 
upon  such  applications  fiom  day  to  day  or  from  time  to  time. 

Sep.  8.  .Tlie  said  commission  shall  have  power  to  demand 
from  any  investment  company  seeking  to  come  under  the  pro- 
visions of  this  act  any  fnrther  information  other  than  such 
investment  company  is  reqnired  to  furnish  under  the  provi- 
sions of  this  act  which  shall  be  necessary  to  the  end  that  the 
commission  may  be  put  in  possession  of  all  facts  and  informa- 
tion necessary  to  qualify  it  to  properly  pass  upon  all  ques- 
tions that  may  come  before  it.  It  may  make  or  have  made 
nnder  its  direction  a  detailed  examination  of  snch  investment 
company's  property,  business  and  atfairs,  which  examination 
shall  be  at  the  expense  of  snch  investment  company.  It  may 
cau^e  an  appraisal  to  be  made,  at  the  expense  of  said  invest- 


Certified 
copies. 


Consent  to 
suits. 


Resolution  of 
directors,  etc. 


Duplicate 
process  of 
pleadings. 


Hearing  on 
application. 


Notice. 
Adjourn- 
ment. 

Furtlier  in- 
formation 
may  be 
demanded. 


Detailed  ex- 
amination. 


MICHIGAN  SECURITIES  COMMISSION 


17 


Appraisal  of 
property. 


Withholding 
license  to  sell. 


Examination 
of  statements, 
etc.,  filed. 


Disapproval 
of  sale. 
Notice. 


Sales  unlaw- 
ful. 


Approval  of 
sale. 


ment  company,  of  the  i)ropei-ty  of  said  investment  company, 
inchuliiij;  the  value  of  i)a tents,  jroocl  will,  promotion  and 
intanoible  assets,  and  it  may  li.x  the  amount  of  stocks,  bonds 
and  securities  if  such  corporation  lias  issued  stocks,  for<'ijin 
or  domestic,  in  i)avment  for  property,  patents,  good  will,  pro- 
motion and  intanoil)lo  assets  in  excess  of  their  value  lind  the 
same  to  be  worth  and  may  recpiire  that  such  stocks  and  securi- 
ties so  issued  for  such  iiroperty,  patents,  good  will,  promotion 
and  intangible  assets  shall  be  deposited  in  escrow  under  such 
terms  as  said  commission  may  i>rescribe.  And  said  commis- 
sion may  withhold  its  license  to  sell  such  stocks,  bonds  and 
securities  if  such  cori)oration  has  issued  stocks,  l)onds  and 
securities  in  payment  for  property,  ])atents,  good  will,  promo- 
tion and  intangible  assets  in  excess  of  their  value  as  fouiul  by 
said  commission  or  if  said  stocks,  bonds  and  secui-ities  are 
not  deposited  in  escrow  according  to  the  terms  fixed  by  such 
commission  until  such  stocks,  bonds  and  securities  issued  in 
paj^ment  for  pro])erty,  patents,  good  will,  promotion  and 
intangible  assets  in  excess  of  the  value  so  found  by  said  com- 
mission have  been  surrendered  to  such  corporation  and  can- 
celled by  it,  and  until  the  said  stock  lias  been  deposited  in 
■escrow  under  the  terms  ])rescribed  by  said  commission.' 

Sec.  9.  It  shall  be  the  duty  of  said  commission  to  examine 
the  statements  and  documents  tiled  in  its  office  by  an  invest- 
ment company  and  tlie  reports  of  any  investigation  conducted 
under  the  direction  of  said  commission  and  to  hear  such 
applicant  and  it  shall  have  power  to  examine  under  oath  any 
person  interested  or  connected  with  such  investment  com- 
pany, and  if  said  commission  finds  that  the  proposed  plan  of 
business  of  said  investment  company,  or  that  its  proposed 
contracts,  stocks,  I)onds  or  otlier  securities  are  fraudulent  or 
are  of  sucli  a  nature  that  the  sale  of  such  contracts,  .stocks, 
bonds  or  other  securities  woubl  in  the  opinion  of  said  com- 
mission work  a  fraud  upon  the  purcliaser,  then  said  commis- 
sion sliall  disap])rove  the  sale  of  such  ju-oposed  contracts, 
stocks,  bonds  or  other  securities  and  shall  notify  such  invest- 
ment company  by  registered  mail  of  its  tindings  and  dis- 
ap])roval,  and  it  shall  be  unlawful  for  such  company  to  do 
any  business  in  the  way  of  selling,  offering  for  .sale,  taking 
sui>scriptions  for,  or  negotiating  for  the  sale  in  any  mannei- 
whatever  of  any  such  contracts,  stocks,  bonds  and  other 
.securities  in  this  State:  and  said  contracts,  stocks,  liomls  and 
other  securities  sliall  not  be  sold  in  this  State.  If,  Iiowever, 
said  commission  shall  not  (ind  that  the  ]»roposed  phm  of 
business  of  said  investment  company  or  that  its  ])ro]tosed 
contracts,  stocks,  bonds  or  other  securities  are  frauduU'ut 
or  are  of  such  a  nature  tliat  the  sale  of  such  contracts,  stocks, 
bonds  or  other  securities  would  in  the  opinion  of  said  com- 
mission work  a  fraud  u])on  the  pnrchasei-  thereof,  then  it 
shall  approve  the  sale  ()f  such  stocks  in  the  State  of  Michigan 
and  issue  its  certificate  in  substantially  the  following  lan- 
guage : 


18 


FIRST  REPORT 


"This  is  to  certify  tliat  the certificate, 

has  this  date  been  "iveii  permission  to  sell  | *^°''™  *^^- 

of  its within  the 

stocks,  bonds  or  secnrities. 
State  of  Michigan.    Tlie  Commission  does  not  recommend  the 
pnrchase  of  this  secnrity. 

Dated .* 

In  AVitness  Whereof,  I  have  herennto  affixed  the  corporate 
seal  of  the  JMichifjan  Secnrities  Commission. 

(SEAL)  

Secretary." 
The  words  "The  commission  does  not  recommend  the  i)nr-   Non-recom- 

,.      ,  .  •       .1       I     n    1  •  -I     •  •  mendatory 

chase  ot  this  secnrity  shall  be  printed  m  type  two  sizes  clause,  type, 
larger  tliaii  any  other  i)art  of  said  certificate,  and  in  case  said 
certificate  or  the  fact  tliat  said  commission  lias  approved  said 
secnrity,  is  printed  or  published  in  any  circular,  pamphlet  or 
newspaper,  the  words  "The  commission  does  not  recommend 
tlie  pnrchase  of  this  secnrity''  shall  be  printed  in  type  two 
sizes  larger  than  the  tyv>e  in  which  the  statement  of  fact  that 
such  secnrity  has  been  approved  by  said  commission  appears. 

Sec.  10.     Any  person,  firm,  co-partnership,  corporation  or   who  deemed 
issociation  whether  domestic  or  foreign,  not  the  issner,  who.  "Dealer." 
iliall  in  tliis  State  sell  or  offer  for  sale  any  of  the  stocks, 
')oiids  or  otlier  secnrities  issned  l»y  any  foreign  or  domestic 
nvestment    company,    except    the   secnrities    specifically    ex- 
empted in  this  act.  or  wlio  shall  by  advertisement  or  other- 
vise  profess  to  engage  in  the  bnsiness  of  selling  or  offering 
or  sale  sncli  secnrities,  sliall  be  deemed  to  be  a   '^dealer'' 
111   sucli  securities  within  tlie  meaning  of  this  act,  and   no 
lealer  within  the  meaning  of  this  act  shall  sell  or  offer  for    Unlawful 
>ale  any  sncli  secnrities  or  profess  the  bnsiness  of  selling  or   ^^^®^' 
(ffering  for  sale  sncli   secnrities  nnless  and   nntil   he  shall 
lave  filed  a  list  of  the  same  in  the  office  of  the  Michigan 
"Securities   Commission   as   in   tliis  act  provided.     The  term    ^emeda 
'dealer"  sliall  not  include  an  owner  not  issner,  of  such  secnri-    "dealer." 
ies  so  owned   by  him   when   snch   sale  is  not  made  in  the 
•onrse  of  continned  and  successive  transactions  of  a  similar 
latnre,  nor  one  who  in  a  trust  ca])acity  created  by  law  law- 
"iilly  sells  any  secnrities  embraced  within  snch  trnst. 

Sk(".   1 1 .     Any  dealer  desiring  to  sell  or  offer  for  sale  within    ^gfiter*with 
his  State  any  stocks,  bonds  or  other  secnrities  not  exempted   commission. 
inder  the  terms  of  this  act,  shall  first  register  Avitli  the  Michi- 
gan  Securities  Commission   and   shall   furnish   said   commis- 
,i(m,  upon  oath,  in  snch  fonh  as  the  commission  shall  pre- 
.(•rilie,  tlie  following  information,  to-wit :     The  <lealer's  name,    information 
('sid(Mice  and  bnsiness  address,  the  general  character  of  the   f"'-ni«hed. 
.('cnriti(\s  to  be  dealt  in,  the  place  or  places  where  the  Itnsi- 
K'ss    is   to   be   conducted    within   this    State,   and   where   the 
Misiness  in  this  State  is  not  to  be  condncted  by  the  dealer  in 
person,  then  the  names  and  addresses  of  all  the  persons  in 
charge  thereof.     Said  dealei-  shall  pay  to  the  commission  a    Fee. 
fee  of  fiftv  dollars  and  shall  fnriiish  said  commission  with 


MICHIGAN  SECURITIES  COMMISSION 


10 


Further 
information. 


Striking  name 
off. 


Proviso, 

unregistered 

agent. 


Agent  for 
service  of 
process. 


License 
issued. 


Proviso, 

former 

licenses. 


Agents  fees. 


Disposition 
of  fees. 


Expenses  of 
commission. 


Accounts  of 
companies, 
how  kept. 


Open  to 
stockholders 
and  in- 
vestors. 


such  other  information  in  addition  to  that  above  .sju'cified  as 
said  commission  shall  deem  necessary  in  order  to  thoi-on};;hly 
ac(inaint  snch  commission  with  the  character  of  tlie  business 
of  said  dealer.  '  All  authorized  ajjents  of  any  dealer  shall  he 
registered  with  the  commission  and  the  name  of  any  agent 
shall  be  stricken  from  the  register  by  the  commission  upon 
the  written  request  of  the  dealer  and  additional  agents  may 
be  registered  by  the  commission   upon   like  recjuest   of   the 
dealer:     Provided,  That  no  agent  shall  act  as  such  until  his 
name  and  address  sliall   be  registered  with  the  commission. 
If  the  dealer  shall  be  a  non-resident  of  this  State  or  a  cori)ora- 
tion  other  than  a  domestic  corporation,  he  shall  at  the  time 
he  registers  with  the  commission,  lile  with  the  commission  a 
written  dnlv  authenticated  appointment  of  the  Commissioner 
of  the  State  Banking  I)ei)artment  of  this  State  as  his  or  its 
agent  in  Michigan  upon  whom  process  or  pleadings  may  be 
served  for  and  on  behalf  of  the  dealer,  which  api)ointinent 
shall    be    irrevocable.      X'pon    com])liance    by    such    dealer 
with  the  provisions  of  this  act  the  said  commission  shall  issue 
to  such  dealer  a  license  under  the  seal  of  said  commission  and 
signed  by  the  secretary  thereof,  which  said  license  shall  be 
good  until  revoked  by  said  commission  for  good  cause  upon 
notice  to  such  dealer  "and  a  hearing  didy  had:     Provided  fur- 
ther. That  said  commission  shall  issue  the  license  provide<l 
for  in  this  section  to  each  dealer  registered  under  act  one 
hundred  forty-three  of  the  Public  Acts  of  nineteen  hundred 
thirteen  uiion  the  payment  to  said  commission  of  the  sum  of 
one  dollar,  and  shall  also  issue  licenses  under  the  terms  of 
this  act  and   upon  the  payment   of  the  sum   of  twenty-tive 
cents  to  such  agents  as  were  registered  under  th(>  ])rovisions 
of  said  act  number  one  hundred  forty-three  of  the  Public  Acts 
of  nineteen  hundred  thirteen. 

Sec.  12.  In  addition  to  the  tiling  and  examination  fees 
herein  provided  for  to  be  ])aid  by  investment  companies  and 
dealers,  there  shall  be  charged  and  collected  by  said  c(unmis- 
sion  a  fee  of  three  dollars  for  the  registration  and  authoriza- 
tion of  each  agent  of  any  such  investment  company  or  dealer 
and  all  the  fees  and  charges  collected  by  the  conunission  shall 
be  turned  into  the  State  Treasury  and  are  hereby  reappro- 
priated  to  the  commission  towards  paying  the  expenses  ot 
enforcing  this  act.  The  exi»enses  of  said  commission  shall  not. 
however,  be  limited  to  the  moneys  received  1)y  it,  but  it  shall 
have  the  power  to  incur  all  exi»enses  it  tinds  necessary  in 
enforcing  the  provisions  hereof. 

Sec.  i:l  General  accounts  of  every  investment  company, 
domestic  or  foreign,  shall  be  kept  in  a  bnsinesslike,  and 
intelligent  manner  and  in  suflicient  detail  that  said  commis- 
sion can  ascertain  at  any  time  its  linancial  condition  and 
the  books  of  accounts  shall  at  all  tinu's  during  business  hours, 
except  on  Sundays  and  legal  holi<lays,  be  oi)en  to  stock- 
holders and  investors  in  said  company,  and  the  said  conunis- 
sion  or   its   dulv   authorized    representatives,   and   all    such 


20 


FIRST  REPORT 


investment  companies,  shall  be  subject  to  examination  by 
said  commission  or  any  member  thereof  or  the  clerks,  account- 
ants or  examiners  thereof,  at  any  time  said  commission  shall 
deem  it  advisable,  and  in  the  same  manner  as  it  is  now  pro- 
vided for  the  examination  of  State  banks,  and  such  investment 
company  shall  pay  a  fee  for  each  of  such  examinations  of  not 
to  exceed  seven  dollars  for  each  day  or  fraction  thereof 
that  any  member  of  said  commission,  clerk,  accountant  or 
examiner  is  absent  from  the  capitol  building  for  the  purpose 
of  making  such  examination  and  shall  also  pay  the  actual 
traveling  and  hotel  expenses  of  the  person  or  persons  making 
such  examination  and  the  failure  or  refusal  of  any  investment 
company  to  pay  such  fees,  upon  demand  of  such  commission, 
clerk,  accountant  or  examiner,  while  making  such  examina- 
tion shall  work  a  forfeiture  of  the  right  of  such  investment 
company  to  sell  or  offer  for  sale  any  of  its  contracts,  stocks, 
bonds  or  other  securities  in  this  State.  In  case  of  a  prelimi- 
nary examination  of  any  investment  company  by  said  com- 
mission for  the  purpose  of  the  ascertainment  by  said  commis- 
sion as  to  whether  said  company  shall  be  permitted  to  come 
under  the  provisions  of  this  act,  the  fee  for  such  examination 
shall  be  the  same  as  in  this  section  provided,  and  in  case 
it  shall  be  made  to  appear  to  the  commission  from  the  exami- 
nation of  said  investment  company  after  said  investment 
company  has  been  authorized  to  sell  its  stocks,  bonds  and 
securities  that  the  further  sale  of  said  stocks,  bonds  and 
other  securities  would  work  a  fraud  upon  the  purchaser,  then 
said  commission  may  make  an  order  revoking  the  license  of 
said  investment  company  to  sell  its  stocks,  bonds  and  securi- 
ties upon  notice  duly  given  and  a  hearing  duly  had  and  may, 
pending  such  hearing,  suspend  the  right  of  said  investment 
company  to  sell  its  stocks,  l»onds  and  securities. 

Sec.  14.  It  shall  be  unlawful  for  any  investment  company 
or  dealer,  or  representative  thereof,  either  directly  or  indi- 
rectly, to  sell  or  cause  to  be  sold,  otter  for  sale,  take  subscrip- 
tions for,  or  negotiate  for  the  sale  in  any  manner  whatever  in 
this  State,  any  stocks,  bonds  or  other  securities  (except  as 
expressly  exempted  herein ) ,  unless  and  until  said  commission 
has  approved  thereof  and  issued  its  certificate  in  accordance 
with  the  provisions  of  this  act,  nor  shall  it  be  lawful  for  any 
such  investment  company  to  transact  business  on  any  other 
])lan  than  that  set  forth  iii  the  statements  and  papers  required 
to  be  filed  by  virtue  of  the  provisions  of  this  act  or  the  rules 
of  the  commission.  It  shall  be  unlawful  for  any  investment 
company  or  dealer,  or  its  or  his  agents,  to  issue,  circulate  or 
deliver  any  advertisement,  pamphlet,  circular,  prospectus,  or 
other  document  in  regard  to  its  stocks,  bonds  or  other  securi- 
ties in  the  State  of  Michigan  differing  in  any  way  from  the 
copy  filed  witli  said  commission  as  provided  by  this  act.  It 
shall  be  unlawful  for  any  newspaper  published  in  the  State 
of  Michigan  to  advertise  the  sale  of  any  stocks,  bonds  or 


Examination. 


Expenses. 


Preliminary 
examination 


Revocation 
of  license  to 


Unlawful 
advertise- 
5,  etc 


MICHIGAN  SECURITIES  COMMISSION 


21 


I'nlawful 
sales  by 
tloalers. 


Proviso,  sale 
of  unlicensed 
stocks. 


Information 
to  be  public. 


Commission 
may  publish 
information. 


Disposition 
of  fees. 


Laws  not 
affected. 


Seal  of 
commission. 


Certified 

copies 

evidence. 


False  state- 
ments or 
entries. 


securities  whicli  liave  not  Ikhmi  approved  by  said  cotnniission 
or  whidi  are  not  exempt  nnder  the  i)rovisions  of  this  act. 

8ec.  15.  No  dealer  within  tlie  ineaniiijj;  of  this  act  shall 
sell  or  offer  for  sale  within  tliis  State  any  of  the  stocks,  bonds 
or  other  securities  of  any  investnuMit  coiiipany  unless  siicli 
investment  comijany  shall  have  fnlly  comijIicMl  willi  all  the 
provisions  of  this  act,  nor  until  said  dealer  shall  have  reji;is- 
tered  with  Ihe  commission,  under  the  terms  of  this  act  :  I'lo- 
ridcd,  hoircrcr,  That  should  any  dealer  desire  1o  sell  or  oiVei- 
for  sale  within  this  State  the  stocks,  bonds  or  other  secui-ilies 
of  an  investment  comi)any,  which  has  not  itself  complied  with 
the  provisions  of  this  act,  said  dealer  shall  make  ai)plication 
to  the  said  commission  for  license  as  hereinbefore  provided 
for  apidications  by  investment  companies  and  shall  pay  the 
same  fee  required  to  be  paid  by  said  investment  company. 

Sec.  16.  All  information  obtained  by  the  commission  with 
reference  to  any  securities  and  all  records  of  the  commission 
relating  thereto  shall  be  open  to  examination  by  the  public, 
and  it  shall  be  the  duty  of  the  commission  to  ])reserve  such 
information,  and  so  classify,  and  arrange  it  as  to  facilitate 
examination.  The  commission  may  from  time  to  time  issue 
in  pamphlet  form,  or  by  means  of  newspaper  advertisenients 
or  otherwise,  any  and  all  information  regarding  any  and  all 
contracts,  stocks,  bonds  or  other  securities  sold  or  offered  for 
sale  within  this  State  which  it  deems  would  be  of  i)ul»lie 
interest  or  advantage.  All  fees  herein  provided  for  shall  be 
paid  into  the  State  Treasury  by  the  commission  upon  receii»t 
thereof. 

Sec.  17.  Nothing  in  this  act  shall  be  construed  to  repeal  or 
modify  any  laws  giving  the  State  Banking  Department  of 
this  State "^control  of  and  sui)ervision  over  State  banks  and 
the  business  of  banking  in  this  State,  nor  shall  any  part  of 
this  act  be  construed  to  repeal  or  modify  laws  giving  the 
Commissioner  of  Insurance  of  this  State  control  of  and 
supervision  over  the  business  of  insurance  in  this  State,  and 
those  engaged  therein. 

Sec.  is.  The  commission  shall  adopt  a  seal  with  the  words 
''Michigan  Securities  Commission''  and  such  design  as  the 
commission  may  prescribe,  engraved  thereon,  by  whicli  it 
shall  authentiea'te  its  ])roceedings.  Opies  of  all  records  and 
papers  in  the  office  of  the  commission  certilied  by  the  secre- 
tary thereof  and  authenticated  by  the  seal  of  said  Michigan 
Securities  Commission  shall  be  received  in  evidence  in  all 
courts  e(pially  and  with  like  effect  as  the  originals. 

Sec.  19.  Any  person  who  shall  knowingly  or  wilfully  sub- 
scribe to  or  make  or  cause  to  be  made  any  false  statement 
or  false  entry  in  any  book  of  any  investment  company,  or 
who  shall  exhibit  any  false  paper  with  the  intention  or  for 
the  purpose  of  deceiving  any  i)erson  authorized  to  examine 
into  the  affairs  of  said  investment  company  or  shall  make  or 
l)ublish  any  false  statement  of  the  linancial  condition  of  said 
investment  company  or  false  statement  relating  1o  the  con- 


22 


FIRST  REPORT 


tracts,  stocks,  bonds,  or  other  securities  by  it  issued  and 
offered  for  sale,  shall  be  deemed  guilty  of  a  misdemeanor  and 
shall  be  punished  as  hereinafter  provided. 

8ec.  2}).  The  commission  shall  ])rovide  for  the  furnishing 
to  those  who  may  apply  therefor,  of  an}^  information  regard- 
ing any  investment  company  or  its  affairs,  which  is  on  file  in 
its  oltice,  said  commission  to  charge  therefor  approximately 
the  cost  of  preijai'ing  sucli  information.  All  fees  collected 
under  the  provisions  of  tliis  act  shall  be  paid  into  the  State 
treasury  on  the  first  day  of  each  and  every  calendar  month, 
and  a  complete  record  of  all  fees  received  shall  be  kept  in  the 
office  of  the  commission,  and  all  said  fees  so  turned  into  the 
State  treasury  are  hereby  re-appropriated  to  the  commission 
for  the  purpose  of  paying  salaries  and  expenses  necessary  for 
carrying  this  act  into  effect.  The  members  of  the  commission 
shall  perform  the  duties  imposed  upon  them  and  each  of 
them,  by  the  terms  of  this  act,  without  other  compensation 
than  the  salaries  paid  them  by  the  State,  but  they  shall  be 
entitled  to  receive  their  actual  expenses  incurred  when  absent 
from  the  seat  of  government  on  business  of  the  commission. 
Sec.  21.  Every  investment  company,  domestic  or  foreign, 
shall  file  during  the  month  of  January  in  each  and  every  year 
a  detailed  statement  in  such  form  and  containing  such  infor- 
nmtion  as  the  commission  shall  require  showing  its  condition 
at  tlie  close  of  business  on  the  preceding  December  thirty-first, 
and  shall  at  the  same  time  pay  a  filing  fee  therefor  of  one 
dollar. 

Sec.  22.  The  supreme  court  upon  petition  of  any  person 
aggrieved  may  review  by  certiorari  any  final  order  of  deter- 
mination of  the  commission.  The  issuance  of  the  writ  shall 
not,  however,  unless  specifically  ordered  by  the  court,  operate 
as  a  stay  of  proceedings. 

Sec.  23.  Any  person  or  persons  who  shall  violate  any  of 
the  provisions  of  this  act  shall  be  deemed  guilty  of  a  misde- 
meanor and  upon  conviction  thereof  shall  be  fined  not  more 
than  one  thousand  dollars  or  shall  be  imprisoned  in  the 
county  jail  for  not  more  than  one  year,  or  both  such  fine  and 
inijirisonment  in  the  discretion  of  tlie  court. 

Sec.  24.  Sliould  tlie  courts  of  this  State  declare  any  sec- 
tion or  provision  of  tliis  act  unconstitutional  or  unauthorized, 
or  in  conflict  with  any  other  section  or  provision  of  this 
act,  then  such  decision  shall  effect  only  the  section  or  pro- 
vision so  declared  to  be  unconstitutional  or  unauthorized  and 
shall  not  affect  any  otlier  section  or  part  of  this  act. 

Sec.  25.     Act  one  hundred  forty-three  of  the  Public  Acts  of 
nineteen  hundred  thirteen  and  all  acts  or  parts  of  acts  in 
conflict  herewith  are  hereby  repealed. 
Approved  April  9,  1915. 


Penalty. 


Commission 
to  furnish 
information. 


Disposition 
of  fees. 


Members  to 
receive  no 
additional 
compensa- 
tion. 


Actual 
expenses. 

Statements 
filed  by 
companies. 


Jurisdiction 
of  supreme 
court. 


Effect  of  un- 
constitu- 
tional 
provision. 


Act   repealed. 


MICHIGAN  SE(MIRITIP]S  COMMISSION  2.'{ 


VALIDITY   AND   (M)XSTrTUTIONALTTV   OF   :\rrCHI(}AN'S   BLUE 

SKY  LAW. 

The  validity  of  llic  Miclii^an  Blue  Sky  Law  was  (irst  attackcMl  tln-(ni«,'li 
an  injimctioii  suit  in  llie  United  States  District  Uonit  for  llie  lOasteni 
District  of  Michigan,  enjoining  tlie  Micliigan  Securities  ('onuuission 
from  enforcing  the  i)rovision  of  the  law.  An  ai)i)eal  from  the  Inited 
States  District  Uonrt  to  review  the  decree  was  made  to  the  United  States 
Supreme  (N)urt.  (Frank  ^y.  Merrick,  John  W.  llaarer,  and  (Jrant  l-Vl- 
lows,  ai)i)ellants,  versus  N.  W.  Halsey  &  (^)mpany,  et  al.,  and  the  Weis 
Fibre  (\)ntainer  (;or])oration — pages  :>(\7-~M) — Volume  '2i'2.  United  States 
Su])reme  Court  Re])orts.) 

On  October  Kith  and  17th.  IDKi,  the  Attorne.v  Oeneral  of  the  State 
argued  the  cause  for  the  appellants  (being  the  mend)ers  of  the  Michigan 
Comnussion)  before  the  Sujireme  Uor.rt,  and  Messrs.  (Jeorge  W.  AVicker- 
sham,  former  United  States  Attorney  Oeueral.  and  Robert  K.  llvvd. 
Attorney  for  Divestment  Bankers,  argued  the  cause  for  ai)i)ellees. 
Exhaustive  briefs  were  tiled  by  both  sides  and  on  .January  L'L'nd,  U.»17. 
the  o])inion  of  the  Supreme  (N)urt  of  the  United  States  was  handed  down 
reversing  the  opinion  of  the  I-Vderal  Court  and  thereby  upludding  the 
validity  and  constitutionality  of  the  Michigan  Blue  Sky  Law. 


REVISED 

RULES  AND  REdULATIONS 

OP  THE 

MICHKJAN  SECUKITTES  COMMTSSION. 

(All  references  to  Sections  refer  to  the  law  regulating  Foreign  and 
Domestic  Investment  (/onipiinies,  being  Act  No.  4(1  of  the  Public  Acts  of 
1915.) 

I — Exemptions. 

1.  This  law  does  not  affect  the  sale  of  the  following:     (Sec.  3) 

(a)  Securities  of  the  United  States,  or  any  foreign  government, 
or  of  any  state  or  territory  thereof,  or  of  any  county,  city, 
township,  district  or  other  public  taxing  subdivision  of  any 
state  or  territory  of  the  United  States,  or  any  foreign  gov- 
ernment. 

(b)  Unsecured  commercial  paper. 

(c)  Securities  of  public  or  quasi  public  corporations,  the  issue 
of  which, securities  are  regulated  l)y  the  Michigan  Railroad 
Commission  or  by  a  public  service  commission  or  board  of 
equal  authority  of  any  state  or  territory  of  the  United 
States,  or  securities  senior  thereto. 

(d)  .  Securities  of  state  or  national  banks  or  trust  companies,  or 

building  and  loan  associations  of  this  State. 

(e)  Securities  of  any  domestic  corporation  organized  without 
capital  stock  and  not  for  pecuniary  gain,  or  exclusively  for 
educational,  benevolent,  charitable  or  reformatory  pur- 
poses. 

(f )  Mortgages  upon  real  and  personal  property  situated  within 
this  State  where  the  entire  mortgage  is  sold  and  trans- 
ferred with  the  note  or  notes  secured  by  such  mortgages. 

(g)  Increase  of  stock  sold  and  issued  to  stockholders,  also 
stock  dividends. 

(h)  Securities  which  are  listed  in  any  standard  manual  of 
information  approved  by  said  commission. 

(i)  All  stocks,  bonds  and  securities  approved  by  the  Michigan 
Securities  Commission,  created  by  Act  No.  143  of  the 
Public  Acts  of  1013. 

2.  The  Commission  has  on  tile  and  until  further  notice  will  not  demand 

Ihe  filing  of  statements  and  will  i)ermit  tlie  sale  of  securities  listed 
in  the  latest  editions  of: 

A.  The  Standard  Statistics  Bureau's  Bond  Records. 

B.  The  Standard  Statistics  Bureau's  Stock  Records. 


MICHIGAN  SECURITIES  COMMISSION  25 

C.  Poor's  Manual  of  Railroads. 

D.  Poor's  Manual  of  Public  (Militics. 
K.     Poor's  IVIauual  of  Industi-ials. 

F.     Moody's  Manual  of  Kailroads  and  Corporations  Seen ri tics. 
(r.     Michigan  Manual  of  Corporation  Statistics. 
H.     Annual  Financial  Keview — Canadian, 

The  Connnission,  however,  reserves  the  right  at  its  discretion  to  c.xclnde, 
at  any  time,  any  information  contained  in  the  foregoing  or  furnished 
under  the  provisions  of  this  rule,  not  otherwise  exempt,  and  to  demand 
such  additional  information  and  proof  as  it  may  deem  necessary.   (Sec.  IJ.) 

Should  the  Commission  at  any  time  be  informed  that  any  company 
listed,  or  to  be  listed,  in  any  of  the  above  manuals  and  claiming  exemp- 
tion thereby,  is  selling  or  otl'ering  for  sale  any  new  issue  of  stock,  bonds 
or  other  securities  or  any  part  of  existing  unissued  securities,  this 
Commission  may  exercise  its  right  to  exclude  the  statement  of  such 
company  and  it  will  be  necessary  for  such  company  to  discontinue  selling 
or  ottering  for  sale  any  of  its  securities  until  it  has  made  api)lication 
to  the  Commission  for  the  sale  of  the  same,  and  complied  with  all  of  the 
provisions  of  Act  No,  46,  Public  Acts  of  1915. 

A  resolution  was  made  and  adopted  Oct.  24,  11)17,  eliminating  the 
manuals  listed  under  paragraph  2,  of  the  Rules  and  Regulations  of  the 
Michigan  Securities  Commission,  as  exemptions,  and  providing  that  in 
the  future  no  stock  can  be  sold  in  Michigan  by  reason  of  it  being  listed 
in  said  manuals,  unless  said  listing  was  prior  ito  Oct.  24,  1917. 

3.  It  is  hereby  understood  that  the  exemptions  provided  for  under  the 
provisions  of  Rule  two  shall  only  be  for  the  purpose  to  facilitate 
dealing  in  such  exempt  securities  by  dealers  and  agents  duly 
registered  with  the  Michigan  Securities  Commission,  and  the  bene- 
fit of  such  exemptions  shall  not  apply  to  dealers  or  agents  not 
registered  with  the  (^»nimission. 


II — IXVKST.AIKNT  CoMl'ANIES. 

Domestic  and  Foreign.     (Sec.  2. ) 

The  following  reipiirenuMits  must  be  met  by  invest  iiiciil  comitanies 
before  selling  or  ottering  for  sale  any  of  its  stocks,  bonds,  or  other  securi- 
ties within  this  State.'  The  designation  "Investnient  Companies"  is  a 
general  term  and  end)races  all  corix.i-at ions.  (•o-]»aitn('rshii)s.  companies 
and  associations.     (Sec.  2.  i 

4.  Apjdication  to  sell  secinities  must  be  made  on  hIanUs  furuislicd  by 
the  Commission.  In  addition  to  tlie  iid'ormation  demandcil  in  the 
applicati<ni  torm  there  must  be  attached  thereto  the  s<'veral 
exhibits  ajid  statements  called  for  in  the  same.  All  documents  so 
attached  must,  whenever  i)ra(tical»le.  conform  in  size  to  that  of 
the  application  and   be  attached   consecutively  in   the  order  as 


20  FIRST  REPORT 

reiiuested.     Such  additional  infonnation  as  the  commission  may 
reqnire  mnst  also  accompany  the  application.     (Sec.  4.) 

5.  Filing  fee.  Minimnm  fee  flO.OO,  maximum  fee  -flOO.OO.  Computed 
at'rate  of  one-tenth  of  one  per  cent  of  face  value  of  all  unsold 
securities  (Sec.  4).  Under  an  opinion  of  the  Attorney  General 
filing  fee  is  denuuided  oti  the  basis  of  all  unsold  securities,  covered 
in  the  application,  irrespective  of  the  amount  intended  to  be  sold 
in  tills  State,  for  in  judging  the  merits  of  any  application  the 
Comniissitm  must  consider  the  ]>robable  value  of  all  securities 
wliicli  might  be  sold  at  any  time  or  place.  When  it  is  contem- 
l»lated  or  probable  that  the'owners  of  issued  securities  shall  offer 
for  sale  such  securities  in  the  course  of  continued  and  successive 
transactions  of  a  similar  nature  a  filing  fee  upon  the  entire  issue 
nuist  be  paid.  Payment  of  fee  on  this  basis  will  also  obviate  the 
necessity  of  expensive  examinations  by  the  Commission  to  ascer- 
tain the  exact  amount  of  securities  sold. 

n.  Foreign  investment  companies  must  file  consent  to  suits  by  service 
on  the  Commissioners  of  tlie  Banking  Department.  (Sec.  6.) 
(Blank  forms  supplied  by  the  Commission.) 

7.  Tf  in  the  judgment  of  the  commission  it  is  necessary  to  make  an 

examination  of  any  investment  company,  such  company  will  be  so 
notified.  The  commission  will  render  a  statement  of  the  estimated 
cost  of  such  examination  and  the  amount  so  estimated  must  be 
remitted  in  advance  t()  the  commission.  Where  estimate  exceeds' 
the  actual  cost  of  exansinjition  tlie  balance  will  be  returned. 

8.  No   ai>i)lication   will    hv   considered    unless   accompanied   by   correct 

filiiig  fee  as  above  ])rovided  ;  nor  until  such  applicjition  is  complete 
with  all  ]»apers  demanded  tiled  therewith. 

!J.  Upon  examination  ol"  any  a]»i)lication  made  by  an  investment  com- 
pany, the  secretary  will  notify  siich  applicant  if  an  examination 
of  the  company  should  be  made,  also  the  date  of  hearing  and  said 
applicant  may'appear  and  be  heard  either  in  i)erson  or  by  counsel 
at  such  meeting  or  at  any  meeting  to  which  hearing  upon  such 
apidication  may  be  adjourned. 

10.  No  investment  company  should,  citlier  in   its  jn-ospcclus,  its  adver- 

tising, or  in  soliciting  sale  of  its  stock  or  other  securities,  use,  for 
the  pnri)ose  of  making  such  sales,  the  fact  that  permission  to  sell 
such  securities  has  been  given  by  this  commission.  In  case  the 
fact  that  said  commission  has  approved  such  security  is  printed 
in  any  circular,  i)anii)hlet,  or  newspaper,  the  words  "The  Commis- 
sion does  not  recommend  the  purchase  of  this  security"  shall  be 
l)rinted  in  type  two  sizes  larger  than  the  tyi»e  in  which  the  state- 
ment of  fact  that  such  security  has  })een  a]>i)roved  by  said  com- 
mission ai)pears.     (Sec.  1).  i 

11.  X()TICr:S  .OI'^   I)lSAri'K()\'AL  of  any  securities  submitted  to  the 

(Nnnmission  will  be  sent  by  registered  mail  within  thirty  days 
after  final  order  thereof  is  entered  by  the  Commission.  In  case 
of  disapproval  filin.g  fees  will  not  be  returned. 


MICHIGAN  SECURITIES  COMMISSION  27 

12.  Authoi'i/ed  ngviits  iiuist   be  rcjiislcrcd.      I^\'e  S*,:].{){)  cacli.      (Sec.   11.) 

Kc^istraliou    is    uol    ti-imslerable.      The    Coininission    will    issue 
license's  to  all  aj^cuts  rcj-istci-cd  uiidci'  tlu'  jtrovisions  (A'  Act   No. 
14.'>.  of  the  rublie  Acts  of  lUK'.,  uixtn  llie  payiiiciit  of  the  sum  of 
twenty-iive  cents.     (Sec.  11.) 
(Special  blanks  ai*e  furnished  by  Connnission.  i 

13.  Annual  statements  must  be  filed  during  January,  on  s])ecial  blanks 

furnished  by  the  Commission,  together  with  liliiig  fee  of  fl.OO. 
(Sec.  21.) 

Ill — Dealers. 

14.  Registration  must  be  made  upon  blanks  furnished  by  the  Commission 

and  dealer  must  give  all  information  recpiired  thereon.  This 
registration  is  not  transferable.  The  Commission  will  issue  a 
license  to  each  dealer  registered  under  the  provisions  of  Act  No. 
143,  of  the  Public  Acts  of  1013,  upon  the  payment  of  the  sum  of 
one  dollar.     (Sec.  11.) 

15.  Fee  of  150.00  must  accomi)any  dealer's  registration. 

(Only  payable  once.  I      ( Sec.  11.1 

ir>.  Agents  of  dealers  must  ])e  registered,  fee  for  each  agent  being  $:5.00. 
This  registration  is  not  transferable.     (Sec.  11.) 

17.  Non-resident   dealers   must   file   duly  authenticated    api>ointment    of 

Commissioner  of  the  Ranking  Department  as  his,  or  its  agent 
ujion  whom  process  or  pleading  may  be  served.     (Sec.  11.  i 

18.  All    dealers,   before   olfering   or   selling   any   securities    not    exempt 

under  the  provisions  of  Section  11  (Exemptions)  of  this  bulletin, 
must  submit  the  same  to  the  Commission  under  the  same  j)ro- 
visions  as  provided  for  i)ivestment  conipanies.     (Sec.  15.  i 

10.  Application  of  dealers  should  be  accompanied  by  at  least  four  refer- 
ences, one  of  which  should  be  nmde  by  the  bank  where  the  i»arties 
do  l)usiness. 

IV MiSCELLAXKOrS. 

20.  For  penalties  for  violation  of  law  see  Section  2:'.. 

21.  Transcripts  of  any  information  on   lile  in   the  <•  lice  of  ilic  Commis- 

sion shall  be  furnished  at  twelve  cents  jx-r  lolio,  that  being 
ai»proximately  the  cost  of  prei)aring  the  sani<".  Ccrtilie<l  copies 
can  be  had  at  a  cost  of  twenty  cents  ]>er  folio.  The  minimum 
charge  for  any  pai)ers  certified  to  shall  be  lilty  cents.  Ccrtiticl 
copies  will  be  received  in  evidence  in  all  conils  of  this  Slate. 

22.  Regular  meetings  will  be  held  on  the  second  and   lourth  Wediu^sday 

of  each  month  excejtting  when  there  are  live  Wednesdays  in  one 
month  and  in  such  case  meetings  will  be  held  on  the  thiid  and 
fifth  Wednesdays. 


GENERAL  REPORT. 

Membershit  and  Organization. 

The  membership  of  the  Michigan  Securities  Commission,  as  provided 
for  in  the  Act  creating  it,  consists  of  the  Commissioner  of  the  Banking 
Department,  State  Treasurer,  and  Attorney  General.  The  State  Treas- 
urer and  tlie  Attorney  General  are  elective  State  officers,  while  the 
Commissioner  of  the  Banking  Department  is  appointed  by  the  Governor 
of  the  State.  The  terms  of  their  office  as  members  of  the  Securities 
Commission  are  coterminous  with  the  terms  of  their  respective  offices. 
They  draw  no  salaries  as  members  of  the  Commission,  and  are  only  recom- 
pensed for  actual  moneys  expended  by  them  in  the  performance  of  their 
duties  as  such  members  of  the  Commission. 

The  personnel  of  the  departmental  organization  at  the  date  of  this 
report  consists. of  the  Executive  Officer,  who  is  the  directing  head  of 
the  Department;  the  Chief  Accountant,  two  Examiners,  Chief  Clerk, 
Financial  Clerk  and  Bookkeeper,  two  Stenographers,  Filing  Clerk,  and 
Messenger.  In  addition  to  the  above,  the  Executive  Officer,  by  and  with 
the  consent  of  the  Commission,  lias  authority  to  engage  experts  from 
time  to  time  to  make  examination  of  companies  whose  assets  may  require 
an  expert  appraisal. 

A  most  complete  filing  system  has  been  installed  to  accommodate  the 
steady  increase  of  voluminous  documentary  files  of  cases  considered 
by  the  Commission.  Auxiliary  to  tliis  general  filing  system  is  tlie  card 
index  system,  which  is  wortliy  of  note  in  consideration  of  the  office  organi- 
zation, since  tlie  exact  status  of  the  applications  of  all  investment  com- 
])anies  considered  and  the  condition  of  all  escrowed  stock  can  be  imme- 
diately determined  without  the  necessity  of  going  through  all  the  files 
and  records.  These  cards  contain  a  brief  history  or  synopsis  right  up  to 
date  of  each  investment  company  coming  under  the  jurisdiction  of  the 
Commission,  and  because  of  this  digested  information  the  Department 
is  enabled  to  inform  both  investors  and  investment  companies  of  the 
status  of  all  matters  passed  upon  with  greater  dispatch  and  complete 
accuracy. 

Securities. 

The  layman,  ordinarily,  in  the  consideration  of  what  constitutes  a 
security  docs  not  have  in  mind  anything  but  common  Or  preferred  stock 
and  bo'iids,  but  in  reading  the  Act  it  will  be  noted  that  the  language 
therein  includes  "stocks,  bonds  or  other  securities/'  whether  of  an 
incorporated  or  unincoriKM-ated  com]»any,  co-partnership  or  association 
(foreign  or  domestic),  unless  si)ecifically  exempted  in  the  Act.  Profit- 
sharing  contracts  constitute  a  considerable  portion  of  the  "other  securi- 
ties" coming  under  the  consideration  of  the  Commission.  Attempts  to 
evade  the  Blue  Sky  Law,  or  rather  attempts  to  get  around  it  through  the 


MICHIGAN  SECURITIES  COMMISSION  20 

fiiianciiif^  ol"  lu-opositions  by  means  of  the  sale  ui  these  co-opcialive  (»r 
profit-sharinjj;  contracts,  instead  of  stocks  or  bonds,  have  recently  come 
to  the  attention  of  the  Commission.  A  pbin  often  resorted  to  in  tliis 
connection  is  the  one  used  mostly  by  oil  companies  of  olferiiif^  for  sale 
certain  land  nnits  or  lots  on  a  co-operative  or  profit-sharinjj;  basis.  i'N)r 
illnstration.  a  tract  of  land  is  divi(led  into  live  thousand  nnits,  i-an<;in^ 
in  si7>e  from  one  to  several  hundred  square  feet,  and  selling  foi-,  say, 
^50.00  per  lot.  The  conditions  of  the  contract  are  that  upon  payment  in 
full  for  the  lot,  the  purchaser  will  receive  a  warranty  deed;  that  SI 0.00 
of  the  ])nrchase  price  for  each  lot  will  be  set  aside  as  a  develo]»meut 
fund;  that  upon  the  completion  of  the  sale  of  these  lots  or  land  units  an 
operating  company  will  be  organized  with  its  capital  of  |r)0,00().0() 
(resulting  from  the  flCOO  set  aside  from  the  money  received  from  the 
pnrchasers  of  each  lot),  fully  paid  up,  and  the  owners  of  the  land  units 
or  lots  receiving  from  the  operating  company  ten  dollars'  worth  of  stock 
for  each  land  unit  they  purchase.  In  this  way  the  capital  stock  of  the 
o]»erating  company  is  fully  paid  up  before  it  is  organized  from  the 
money  received  from  the  sale  of  the  land  units.  When  they  get  to  this 
l)oint  they  are  fully  capitalized  and  have  no  need  for  the  sale  of  stock. 
These  contracts  differ  somewhat  as  to  special  features,  and  the  above 
illustration  is  therefore  only  descriptive  in  a  general  way.  The  Com- 
mission holds  that  the  sale  of  a  profit-sharing  contract  of  this  kind 
constitutes  the  sale  of  a  security.  AVhile  it  is  believed  that  this  method 
of  organization  is  often  nsed  as  a  subterfuge,  or  with  a  deliberate  intent 
to  contravene  the  provisions  of  the  Blue  Sky  Law,  yet  the  financing  of 
many  worthy  enterprises  in  this  manner  has  come  to  the  attention  of 
tlie  Commission  and  applications  have  been  filed  submitting  them  as 
securities  for  approval,  in  accordance  with  the  construction  placed  on 
this  class  of  securities  by  the  Department. 

I'HOCKDrUE  Ari'LICAXT  Mt'st  Foi.i>()w. 

(Jreat  care  ami  thought  has  l»een  exercised  by  the  Department  in 
pre]iaring  a]>plication  blanks  for  the  use  of  investment  companies  dcsir 
ing  to  sell  their  securities  witliin  the  State.  These  blaidcs  contain  (pieries 
covering  all  the  cardinal  (juestions  that  may  be  involved  in  passing  on 
tlie  merits  of  an  ai)plication  and  have  been  altered  from  time  to  time  to 
meet  changing  conditions  and  more  etfective  constructions  i)!aced  njion 
the  law  by  the  Attorney  Ceneral. 

Application  blanks  of  investment  companies  used  by  the  Commission 
have  been  provided  for  the  approval  of  stocks  and  general  securities  of 
both  foreign  and  doniestic  companies,  a  sjjccial  form  of  blank  being  nsed 
for  application  to  sell  bonds.  (Ireat  inii)ortance  is  attached  to  the  neces- 
sity of  the  api)licant  filing  full  and  complete  detailed  informaticm  as  will 
enable  the  Commissi(»n  to  intelligently  pass  ujton  each  i)roposition.  This 
is  especially  insisted  ui)on  where  patents  and  formulas,  good  will,  or 
intangible  assets  are  capitalized  or  stock  has  been  or  is  to  be  issued 
therefor.  This  form  of  "watered"  s|(»ck  is  closely  scriitinized.  Cas.  oil. 
mining,  ii-i-igation,  and  othei-  similar  enterprises  are  usually  rciinired  to 
lurnish  s]>(M-ial  information  <'oncerning  tlieii-  inupcrties. 

The  book  value  and  the  assessed  value  of  all  projuMty  belonging  to  \hi- 
companies  is  rcnuired.      In  all  cases  when-  real  estate  is  the  principal 


30  .  FIRST  REPORT 

asset  of  the  company,  or  where  there  is  a  bond  issne  secnred  by  mortgage 
upon  real  estate,  a  certified  copy  of  tlie  conveyance  to  the  company  mnst 
be  attached  to  the  application,  together  with  a  certified  statement  of 
an  attorney  that  the  examination  of  the  title  shows  it  to  be  good  and  in 
the  company.  If  the  company  is  buying  the  land  on  a  contract,  a  copy 
of  the  contract  mnst  be  altaclied  to  tlie  application.  Tf  there  is  a  mort- 
gage on  the  property,  a  copy  of  tlie  same  should  be  filed. 

The  a])plication  provides  for  and  should  show  the  price  at  which  securi- 
ties are  to  be  sold,  and  tlu'  rate  of  commission  that  is  to  be  paid. 

If  the  bond  issue  is  secured  by  a  trust  mortgage,  a  complete  copy  of 
the  trust  mortgage  must  acconi]»any  the  application. 

Tlie  a])plication  also  pi'ovides  for  and  should  contain  a  com]>lete  list  of 
all  stockholders,  their  addresses,  together  with  the  number  of  shares  held 
by  each,  the  value  of  shares,  and  the  actual  consideration  received  by  the 
com])any  for  the  stock.  Api)lication  further  provides  for  copy  of  the 
original  Articles  of  Association  and  amendments  thereto,  being  certified 
as  to  correctness  by  the  Secretary  of  the  State  where  the  company  is 
incorporate<l.  The  application  also  i)rovides  for  a  comprehensive  finan- 
cial statement  showing  comi>lete  list  of  company's  assets  and  liabilities. 

All  foreign  companies  must  file  consent  that  suits  and  actions  may  be 
commenced  against  them  by  service  on  the  Commissioner  of  the  State 
Ranking  Dei)artment  of  Michigan.  (Section  0,  Act  4(5,  Public  Acts  of 
l!)!").)  Blank  forms  are  su|)plied  by  the  Commission  to  the  applicant  for 
this  purpose. 

Pkocedi're  r.v  Department. 

I'l»on  the  filing  of  the  investment  company's  application,  asking  for 
the  approval  thereof  by  the  Securities  Commission  and  permission  to  sell 
its  securities  in  the  State,  a  preliminary  examination  of  such  application 
is  made  by  the  departmental  officers  for  the  purpose  of  determining 
whether  or  not  all  papers  required  by  law  have  been  filed,  and  a  prelimi- 
nary hearing  is  usually  had  with  the  applicant  for  the  pur]>ose  of  deter- 
mining whether  or  not  a  complete  investigation  and  examination  of  the 
company's  assets  and  liabilities,  management  and  prospects  should  be 
made  by  a  regular  or  sjx'cial  examiner  of  the  Commission. 

Examination  and  Investioatiox  of  Investment  Companies. 

The  character  of  the  investigation  and  examination  depends,  of  course, 
entirely  upon  the  conditions  shown  in  the  application  as  to  the  form  and 
character  of  the  enteri)rise.  If  particularized  information  is  required 
in  regard  to  the  financial  condition  of  the  api>licant,  a  complete  examina- 
tion of  the  books  of  the  company  is  made  by  an  auditor  or  examiner 
representing  the  Commission.  Practically  all  examinations  involve  the 
determination  of  the  financial  condition  of  the  ai)plicant  company.  If 
information  is  desired  on  ])roperty  values  which  do  not  recinire  a  tech- 
nical or  expert  examination,  but  may  involve  an  investigation  of  the 
business  trustworthiness  and  financial  responsibility  of  the  persons  rep- 
resenting the  enterprise  and  its  prospects  for  commercial  success,  then 
such  examination  and  report  is  made  by  one  of  the  regular  examiners 
of  the  CoDJimission. 


MICHIGAN  SECURITIES  COMMISSION  31 

ir  till'  ;ii)]tlicinit  (•<iiii))iiny  is  ;i  forci-iii  corporation  and  lias  not  been 
a])i)rovtMl  by  tlic  State  Coniniission  wlicre  organized,  then  in  addition 
to  an  exaniination  of  tlieir  assets  and  lialtilities,  the  Department  has 
been  al»le  to  obtain  very  satisfaetoi-y  inloiination  in  reference  to  the 
standinjj;  of  the  parties  promoting  tlie  enterprise  tlirongli  the  instrn- 
mentality  of  some  .of  the  larger  mercantile  agencies. 

If  the  applicant  company  states  that  it  owns  tangible  oi-  intangibk* 
assets  which  recpiire  an  expert  api)raisement  or  technical  advice;  to  tlie 
Commission  to  determine  its  vahie  (and  there  are  a  nund)er  of  tliese 
in  tlie  motor  industry),  the  application  is  referred  to  an  engineer  of 
recognized  standing  and  ability,  who  nsnally  makes  a  personal  examina- 
tion of  the  patent  values,  formulas,  good  will,  secret  processes,  trade- 
marks, etc.,  of  the  company  and  files  a  rei>ort  with  the  Commission  as 
to  its  commercial  ])ossibilities. 

If  the  company  sets  up  in  its  ai>]>li<"ition  that  its  assets  consist  mostly 
of  mineral  lands,  for  which  stock  is  to  be  taken  or  cash  is  to  be  jiaid. 
the  examination  is  made  by  or  in  conjunction  with  the  State  Cecdogical 
Department.  If  there  is  filed  with  the  application  information  from 
reliable  mining  experts  or  geoh)gists  in  regard  to  the  value  of  properties, 
then  a  report  is  filed  with" the  Commission  by  the  geologist  or  engineer 
representing  the  Commission,  based  on  the  data  which  he  has  exannned, 
but  in  most  instances  the  information  tiled  by  the  a]>plicant  is  inadeiiujite 
and  unsatisfactory  and  a  personal  exaniination  is  made  by  a  special 
examiner,  of  the  properties  described  in  the  ap])lication,  together  with 
an  investigation  of  the  management,  financial  condition  of  the  company, 
and  its  possibilities  for  success. 

Hearings  on  Aitlications. 

After  tlie  report  of  the  Examiner  has  been  filed,  apjdicant  is  notified 
of  the  date  when  the  ajiplication  will  be  heard  by  the  (\)mniission.  The 
ap]»licant  must  be  represented  at  this  hearing  either  by  an  otlicer  or 
attorney  of  the  comi»any.  Witnesses  are  thoroughly  examined  by  the 
Commission,  and  a  stenographic  record  of  the  hearing  is  taken,  which  is 
later  transcribed  and  made  a  ])ermanent  record.  After  the  liearing  an 
order  is  made  by  tin*  Commission  covering  the  several  conditions  of  the 
approval  or  disai)proval.  which  is  entered  in  a  separate  book  known  as 
the  IMTNUTi:  BOOK,  and  is  used  exclusively  for  the  record  of  orders. 

Examination  of  Co.mpaniks  Aftkk  Ai-i-kovai.. 

Although  every  investment  (•onii)any  is  re(|uired  by  the  Acl  1<»  lile  in 
January  of  each' year  a  detailed  annual  statement  showing  lis  liiianii;ii 
cnndition  at  the  close  of  business  of  the  i)receding  December  :!lsl.  yet  it 
is  believed  that  the  real  constructive  work  of  the  Department  can  !><• 
obtained  liv  periodical  examinations  of  comjianies  after  approval.  'Die 
experienceOf  the  Dejiartment  has  been  that  fraud,  stock  and  financial 
juggling,  if  any.  have  taken  jdace  afti'i-  the  company  has  been  approved 
and  therefore  the  re-examination  of  approved  conii)aiiies  periodically 
has  become  of  paramount  importance.  Many  specific  instances  coubl  be 
cited  which  in  justice  to  the  best  interests  of  the  stockholders  thereof 
have  not  been  given  publicity,  where  these  re-examinations  by  the  Com- 


32  FIRST  REPORT 

mission  brought  to  light  conditions  which  would  have  been  disastrous 
to  the  company  and  would  have  resulted  in  the  loss  of  the  investment 
made  b}^  the  stockholders  therein  were  it  not  for  the  action  taken  by  the 
Commission  when  this  condition  was  discovered.  On  the  other  hand, 
many  instances  could  also  be  cited  of  companies  that  have  been  ruined 
through  mismanagement,  fraud,  or  some  other  unnecessary  cause,  which 
could  have  been  prevented  had  the  Commission  been  able,  with  its  limited 
corps  of  examiners,  to  have  made  more  frequent  examinations  of  these 
companies.  The  Commission  believes  that  those  who  invest  in  securities 
are  entitled,  to  a  certain  extent,  to  the  same  protection  as  those  who 
deposit  their  funds  in  the  banks.  As  a  result  of  this  policy  a  genuine 
service  has  been  rendered  to  the  investing  public  of  Michigan  by  adjust- 
ment of  companies  which  had  permitted  their  assets  to  be  impaired  by 
mismanagement  or  fraud.  Attention  should  be  called  to  the  fact  that 
there  are  approximately  twelve  thousand  foreign  and  domestic  corpora- 
tions doing  business  in  the  State  of  Michigan,  and  therefore  it  is  phys- 
ically impossible  for  the  lu-esent  limited  examination  force  of  the  Com- 
mission to  make  these  periodical  examinations  as  often  as  should  be  for 
the  best  interests  of  the  investing  public.  In  comparison  it  might  be 
stated  that  there  are  less  than  six  hundred  State  Banks  and  Trust  Com- 
panies in  the  State,  and  the  Banking  Department  is- required  to  maintain 
a  corps  of  upwards  of  twenty  examiners. 

When  a  re-examination  of  a  company's  atfairs  reveals  conditions 
justifying  the  Commission's  action,  a  citation  is  issued  requiring  the 
officers  of  the  company  to  appear  and  defend  the  charges  cited,  in  the 
examiner's  report.  These  citations  usually  require  all  the  directors  to 
be  present.  The  charges  contained  in  the  examiner's  reports  are  thor- 
oughly gone  over.  The  defendants  in  the  citation  are  examined  and 
finally  an  order  of  the  Commission  is  entered,  based  upon  its  decision  as 
what  is  deemed  best  to  save  the  investments  made  in  the  company's 
securities  by  Michigan  investors.  Where  it  is  believed  that  there  is  no 
o])portunity  for  readjustment,  a  revocation  of  the  license  is  ordered  so 
that  no  further  sales  may  be  made  to  the  Michigan  public.  Many  of  these 
citations  have  been  authorized  as  a  result  of  exorbitant  salaries  paid  to 
officers,  issuance  of  large  blocks  of  stock  for  questionable  assets,  payment 
of  cash  for  intangible  assets  of  a  doubtful  value,  the  payment  of  com- 
missions in  excess  of  the  amount  allowed  by  the  Commission  at  the  time 
of  approval  of  the  application,  or  tlie  company's  violation  of  the  Commis- 
sion's order  in  other  respects. 

Amount  of  Securities  Approved  and  Disapproved  p>y  the  Commission. 

During  tlie  period  covered  by  this  report,  tlie  Commission  has  examined 
and  directlv  passed  upon  one  thousand  investment  companies'  applica- 
ti<»ns,  comin-ising  securities  of  a  total  value  of  .|420,3:32,438.1(),  divided 
as  follows :  Comi)anies  ai)proved,  772,  involving  1205,780,038.10  of  author- 
ized seciuilies.  Comi)anies  disapproved,  29,  with  a  capital  stock  involved 
of  .f:{f>,2(;r),()()0.(M).  Applications  of  companies  indefinitely  postponed, 
57,  witli  a  total  capital  stock  of  |50,740,000.00.  Companies  awaiting 
coiiipletion,  31;  companies  awaiting  examination,  0;  companies  with- 
drawn, 58,  and  consisting  of  an  additional  iij;67,541,400.00  worth  of 
securities. 


MICHIGAN  SECURITIES  COMMISSION  3:? 

In  additiou  to  the  amount  of  securities  that  have  been  disapiti-oved  by 
the  Commission  ami  tlie  amount  involved  in  the  applicalions  which  have 
been  indefinitely  postponed  in  a  manner  wliicli  is  ecpiivalent  to  disap- 
proval, companies  with  an  aiijiregate  capilal  oi"  over  one  hundred  million 
dollars  have  started  to  make  applications,  but  upon  learning  of  the  re- 
quirements of  the  Blue  Sky  l.aw,  that  a  complete  examination  and  investi- 
j^ation  of  the  tangible  and  intangible  assets,  pliysical  properties,  finances, 
and  management  of  their  company  would  be  necessary,  were  deterred 
from  proceeding  further.  It  is  safe  to  estimate  that  upwards  of  two 
hundred  million  dollars  of  questionable  securities  have  been  prevented 
from  sale  in  Michigan  through  the  administration  of  the  Blue  Sky  Law 
during  the  period  covered  by  this  report. 


Securities  Escrowed  with  the  State  Tre.vsurer  by  the  Oimiku  ok  the 

Commission. 

Securities  amounting  to  127.224,009.00  of  investment  companies 
l»assed  upon  by  the  Securities  Commission  have  been  idaced  in  escrow 
with  the  State'  Treasurer.  Of  this  amount  .$3,355,040.00  stock  has  been 
released,  leaving  a  balance  now  in  escrow  of  .^23,868,120.00. 

The  conditions  under  which  the  Commission  has  ordered  the  escrowing 
of  stock  depend  on  the, nature  of  the  enterprise.  While  a  great  deal  of 
stock  issued  to  the  organizers  and  promoters  of  companies  for  promotion, 
patents,  secret  processes,  formulas,  etc.,  has  been  ordered  placed  in 
escrow  before  granting  permission  for  the  sale  of  the  company's  securi- 
ties, a  considerable  amount  of  stock  has,  by  the  order  of  the  Commission, 
been  placed  in  escrow  by  the  holders  thereof  which  has  been  issued  for 
leases,  contracts,  and  pro])erty  of  a  more  tangible  character,  pending 
the  carrying  out  of  certain  conditions  thought  by  the  Commission  to 
be  of  vital  interest  to  the  stockholders  and  to  the  investing  i)ublic.  Under 
the  escrow  agreement  and  order,  the  Commission  reserves  the  right  to 
order  the  return  of  all  escrowed  stock  to  the  treasury  of  the  comi)auy 
for  its  use  and  benefit.  A  large  amount  of  stock  has  been  escrowed  until 
such  time  as  the  company  is  earning  (I  per  cent  net  upon  all  of  its  out- 
standing stock,  thus  jdaVing  the  ixm-sou  to  whom  the  escrowe<l  stock 
was  originally  issued  in  a  position  where  in  order  for  his  stock  to  be  of 
any  value,  the  company  must  first  succeed  to  a  point  in  production  which 
will  provide  sullicientnet  earnings  to  meet  this  requirement. 

Conditions  other  than  the  payment  of  dividends  are  sometimes  the 
bases  of  the  Commission's  escrow  orders:  for  illustration,  in  the  case  c.f 
an  oil  com])any  where  dividends  are  being  paid  but  the  oil  pro<luction 
is  limited;  in  a  case  of  this  sort  the  company  desiring  to  sell  its  securities 
for  the  imrpose  of  further  develoi)ment  l»y  the  sinking  of  new  wells.  The 
escrow  order  sometimes  provides  that  the  stock  shall  remain  in  escrow 
until  the  present  production  has  been  doubled  or  increased  a  certain 
percentage,  thus  preventing  the  holders  of  the  escrowed  stock  from  mak- 
ing a  stock  jobbing  proposition  of  the  matter,  and  reiiniring  them  1.. 
increase  in-oduction  to  the  benefit  of  all  stockholders.  F.netly  the 
escrowing  of  stock  is  the  placing  of  the  same  in  the  hands  of  the  State 
Treasurer  until  the  company  has  complied  with  the  order  of  the  Com- 
mission. 


34  FIRST  REPORT 


Advertising  of  Securities. 


The  character  and  subject  matter  of  advertising  used  by  iiivestmeiit 
companies  and  brokers  to  ])romote  and  stimnlate  the  sale  of  their  securi- 
ties is  of  paramount  importance  to  the  investing  public,  and  to  the 
Commission  in  administering  tlie  Act.  As  previously  noted,  the  Statute 
provides  that  no  investment  company  should  either  in  its  prospectus,  its 
advertising,  or  in  soliciting  the  sale  of  its  securities,  use  for  the  purpose 
of  making  such  sales  the  fact  that  permission  to  sell  has  been  given  by 
the  Commission.  In  some  instances  companies  authorized  to  sell  their 
securities  have  taken  advantage  of  the  Commission's  approval  by  adver- 
tising that  fact,  and  have  even  attempted  to  induce  investors  to  purchase 
on  the  strength  of  the  Commission's  certilicate  of  approval,  intimating  to 
the  investor  that  their  authority  to  sell  securities,  by  the  Michigan  Securi- 
ties Commission,  is  an  insurance  against  any  loss  resulting  from  the 
purchase. 

The  Commission  does  not  recommend  tlie  purchase  of  any  security, 
whether  approved  or  disapproved,  nor  does  it  guarantee  the  investor  that 
no  loss  may  be  sustained  through  the  purchase  thereof.  The  Commission 
can  only  pass  upon  the  merits  of  the  proposition  at  the  time  of  the 
application,  and  the  success  of  the  enterprise  is  therefore  necessarily 
dependent  upon  the  subsequent  management  and  trade  conditions. 

In  addition  to  the  inspection  of  the  advertising  matter  referred  to,  the 
office  has  inaugurated  a  plan  of  examining,  every  day,  advertising  ma^tter 
of  investment  companies  and  dealers  published  in  all  important  news- 
papers of  the  State  with  the  following  objects  in  view :  First,  to  ascer- 
tain whether  api)roved  companies  are  complying  with  the  order  of  the 
Commission;  second,  to  determine  whether  registered  dealers  are  selling 
unapproved  securities ;  third,  to  locate  and  cause  to  be  investigated 
those  dealers  who  are  selling  securities  without  being  properly  licensed. 

The  Statute  imposes  a  legal  responsibility  on  tlie  newspapers  of  the 
State  of  not  accepting  for  publication  advertisements  of  unapproved 
securities,  and  most  of  the  newspapers  of  the  State  have  co-operated  with 
the  Commission  in  suppressing  this  class  of  advertising. 

The  Commission  has  found  it  necessary  to  require  the  submission  of 
all  advertising  matter  of  approved  companies  to  the  Department  for 
approval  before  publication  or  acceptance  for  publication  by  the  news- 
papers of  the  State. 

Whenever  deemed  necessary,  the  Commission  has  utilized  the  adver- 
tising columns  of  the  press  to  warn  the  public  against  the  purchase  of 
securities  of  companies  which  have  not  complied  with  the  State  law, 
or  which  are  offered  for  sale  by  unauthorized  companies  or  dealers  located 
outside  the  State.  They  have  also  sought  the  co-operation  of  the  United 
States  Postal  Authorities  in  barring  from  the  mails  advertising  matter 
in  reference  to  stocks,  bonds,  and  other  securities  of  these  companies 
which  have  not  complied  with  the  requirements  of  the  Commission. 

Complaints  and  Prosecutions. 

Perusal  of  the  foregoing  subject  matter  in  explanation  of  the  various 
functions  of  the  Department  will  undoubtedly  impress  the  reader  with 


MICHIGAN  SECURITIES  COMMISSION  35 

the  view  that  tlio  Cominission,  lo  iulniinisloi'  tlie  law  in  a  iiK'aniii^rul 
and  effective  maiiner,  lias  become,  in  a  general  way,  the  investigating  pub- 
lic's Doctor  of  Corporations.  Tills  conclusion  ]»econies  all  tlie  more  sig- 
nificant when  considered  in  connection  with  the  Commission's  activities 
in  general  and  miscellaneous  investigations. 

As  a  result  of  an  increasing  number  of  complaints  tiled  with  the 
Department  in  reference  to  the  sale  of  unai)proved  securities  and 
approved  securities  sold  in  an  unlawful  manner,  there  has  been  appointed 
a  s])ecial  investigator  in  charge  of  complaints  and  provsecutions.  The 
work  of  this  investigator  has  been  very  resultful  in  ferreting  out  fraud, 
misnnniagement,  misappropriation,  or  diversion  of  companies'  funds,  and 
as  a  result  of  his  activities  many  violators  have  been  ap])reiiend(Hl  and 
punished. 

While  the  Department  has  consistently  refrained  from  becoming  a 
collection  agency  in  any  sense  of  the  word,  or  an  arbiter  of  personal 
differences,  yet  cases  without  innnber  are  of  record  wherein  the  element 
of  intent  to  wrong  or  defraud  to  an  extent  warranting  prosecutions  was 
lacking,  but  wherein  there  existed  a  condition,  if  permitted  to  remain, 
would  result  in  the  loss  of  the  entire  investment  to  the  stockholders  unless 
some  action  was  immediately  taken,  either  looking  to  the  return  of  the 
investor's  money  by  those  who  accepted  it  without  first  fully  complying 
with  the  statute,  or  by  return  of  sufficient  tangible  assets,  or  possibly 
by  an  entirely  different  rearrangement  through  reorganization. 

During  the  early  part  of  the  period  covered  by  this  report,  the  i)olicy 
of  the  Department  concerning  the  investigation  of  violations  of  the  Act 
and  the  instituting  of  crimiTial  proceedings  ditVei-ed  somewhat  from  the 
policy  adopted  by  the  Department  later  on.  During  the  early  period, 
while  the  Act  was  yet  new  and  before  an  opportunity  had  been  given  to 
determine  results  by  practical  application  of  the  Act,  it  was  the  policy 
to  look  upon  the  nnftter  of  prosecutions  as  of  more  local  importance  and 
therefore  within  the  jurisdiction  of  the  prosecuting  offices  of  the  county 
in  which  the  offen.se  was  committed,  rather  than  a  State  departmental 
matter  wherein  representatives  of  the  Commission  would  aceunudate  the 
evidence  to  institute  the  criminal  proceedings  through  the  local  prose- 
cuting attorney's  olfice  and  follow  a  case  to  conclusion.  Since  this  new 
]>olicy  lias  beeii  in  vogue,  a  complete  record  is  kept  of  all  prosecutions. 
During  the  period  when  they  were  conducted  by  the  local  officials,  rather 
than  as  a  departmental  matter,  a  record  of  such  cases  and  the  results 
thereof  was  not  available. 

Kegistuation  and  Lk'knsinm;  op  Dea),kijs  and  Acp^nts. 

Every  dealer  desiring  to  sell  or  (.tier  for  sale  within  this  Stale  any 
stocks, "bonds,  oi-  other  securities  nol  exempted  under  the  tt-rms  <)f  the 
Act,  shall,  according  t()  the  provisions  thereof,  lirst  register  with  the 
Commission  and  obtain  authority  to  sell  such  securities.  Cenerally  speak- 
ing, the  -Dealer.'"  so-called,  is  the  broker.  Within  the  meaning  of  the 
Act,  a  dealer  is  deenu-d  to  be  any  person,  firm,  co-pa rtnershi[»,  corpora- 
tion or  association,  whether  donu'stic  or  foreign,  not  the  issuer,  who  shall 
in  this  State  sell  or  offer  for  sale  any  of  the  stocks,  bonds,  or  other  securi- 
ties issued  by  any  foreign  or  domestic  investment  company,  except  the 


36  FIRST  REPORT 

securities  specifically  exempted  by  the  Act,  or  who  shall  by  advertise- 
ment or  otherwise  profess  to  engage  in  the  business  of  selling  or  offering 
for  sale  such  securities.  The  term  ^'Dealer"  does  not  include  an  owner 
who  is  not  the  issuer  of  such  securities  so  owned  by  him  when  such  sale 
is  not  made  in  the  course  of  continued  and  successive  transactions  of  a 
similar  nature;  in  other  words,  an  individual  stockholder  would  not  be 
termed  a  dealer  if  he  were  to  sell  his  personal  stock  in  a  single  trans- 
action. If  he  disposed  of  his  securities  in  the  course  of  continued  and 
successive  transactions  of  a  similar  nature,  he  would  become  a  dealer, 
and  unless  he  were  registered  with  the  Commission  and  obtained  a 
license,  he  would  be  committing  an  unlawful  act. 

The  term  ''Dealer"  does  not  include,  according  to  the  Act,  one  who  in 
a  trust  capacity  created  by  law,  lawfully  sells  any  securities  embraced 
within  such  trust.  The  experience  of  the  Department  has  demonstrated 
that  the  same  relative  importance  sliould  be  attached  to  maintaining 
close  supervision  on  the  sale  of  securities  by  dealers  and  their  agents, 
as  to  the  investment  company  or  original  issuer  of  such  securities.  In 
addition,  therefore,  to  the  information  required  to  be  filed  by  the  dealer 
making  application  for  registration,  further  information  is  asked  for 
from  time  to  time  concerning  the  general  character  of  his  business  trans- 
actions and  of  the  securities  dealt  in  by  him. 

Monthly  reports  are  required  from  all  dealers,  showing  the  amount  and 
kinds  of  securities  sold  by  them  during  the  preceding  month,  the  con- 
dition of  sale,  and  the  amount  received  therefor.  All  dealers  before 
offering  or  selling  any  securities,  unless  exempted  under  the  provisions 
of  the  Act,  or  unless  previously  approved  upon  the  application  of  the 
investment  company,  must  submit  the  same  to  the  Commission  under 
the  same  conditions  as  are  provided  for  investment  companies  making 
their  application  direct. 

Non-resident  dealers  must  file  duly  authenticated  appointment  of  the 
Commissioner  of  the  Banking  Department  as  his  or  its  agent  upon  whom 
process  of  pleading  may  be  served. 

All  agents  in  the  employ  of  dealers,  or  investment  companies,  must 
first  apply  to  the  Commission  and  obtain  a  license  before  offering  any 
securities  for  sale. 

In  addition  to  the  revocation  of  the  autliority  granted  dealers  and 
agents  to  sell  securities,  for  non-compliance  with  the  provisions  of  the 
A*c't  or  the  orders  of  the  Commission,  there  are  other  penal  provisions  in 
the  Statute. 


FINANCIAL  REPORT. 

A  complete  record  of  all  receipts  aixl  (lisburseiiieiits  is  kept.  Ollicial 
receipts  are  issued  for  all  fees  received  by  the  Department  in  accordance 
with  the  provisions  of  Act  No.  4G,  Public  Acts  of  1915.  These  fees  are 
deposited  daily  with  the  State  Treasurer  and  at  the  close  of  each  month 
transfers  are  made  to  the  general  fund  of  the  State. 

The  fees  received  by  the  Department  in  accordance  with  the  luovisions 
of  the  Statute  consist  of  a  filing  fee  from  the  investment  companies  mak- 
ing application  for  the  approval  of  their  securities,  based  upon  one-tentli 
of  one  per  cent  of  such  investment  companies'  unissued  securities,  the 
nuiximum  fee  being  flOO.OO  and  the  minimum  -flO.OO.  Application  for 
dealer's  license,  a  fee  of  ijr.jO.OO  is  required ;  for  agent's  license,  a  fee  of 
13.00 ;  filing  fee  for  annual  statements,  |1.00,  and  for  making  of  copies 
of  records,  12  cents  per  folio,  and  20  cents  per  folio  for  certified. 

Additional  to  these  stated  fees,  an  investment  company  submitting  an 
application  for  the  approval  of  its  securities  is  required,  in  accordance 
with  the  provisions  of  the  Statute,  when  an  examination  is  necessary,  to 
remit  in  advance  to  the  Commission  an  examination  fee  as  will,  in  the 
estimation  of  the  Commission,  be  sufficient  to  cover  the  expense  and  per 
diem  of  the  examiner  making  such  examination. 

During  the  first  j^ears  of  the  Commission's  existence,  before  the  consli- 
tutionality  of  the  Act  was  definitely  upheld  by  the  United  States  C(»>ii-(, 
enalding  the  Commission  to  perfect  an  organization  which  included  its 
own  regular  examiners,  these  examinations  for  the  most  i»art  were  made 
by  sjjecial  examiners  having,  technical  knowledge  of  the  class  of  coni- 
l»anies  making  application,  and  the  exi)enses  and  i)er  diem  for  sucli 
examinations  wefe  paid  directly  to  the  Elxaminer  by  the  apjdicant  com- 
pany. Since  April  1st,  1917,  all  moneys  for  examination  purposes  have 
been  paid  in  advance  at  the  office  of  the  Commission,  and  all  balances 
remaining  in  excess  of  the  per  diem  and  expenses  of  the  Examiner, 
whether  special  or  regular,  are  returned  to  the  company.  The  per  diem 
charges  of  the  regular,  salaried  examiners,  when  making  exaniinations  of 
investment  companies,  are  returned  to  the  general  fund  of  the  State. 

Since  July  1st,  1!)1T,  tlie  beginning  of  the  present  liscal  y.-ar.  tlu- 
Commission  has  recpiired  all  examiners,  whether  siiecially  app<tiiiled 
because  of  tlieir  expert  and  teclmical  knowleclge  of  the  class  of  cxainina- 
tion  to  be  made,  or  the  examiners  in  the  regular  emi)loy  of  the  ('..m 
mission,  to  file  an  itemized  bill  in  dui)licate  of  the  expenses  incurred  in 
examinations  and  investigations  of  investment  (•(.mpanies  where  funds 
have  been  advanced  for  this  i.nrjM.se.  After  these  bills  are  ap|»rnved  by 
the  Coininission  at  a  regular  or  special  meeting,  a  warrant  is  drawn  on 
the  Slate  Treasurer  against  the  dejiosit  of  such  company  an<l  tiie  oi-iginal 
bill  as  approved  by  the  Commission  is  tlien  tiled  with  tlu;  Hoard  of  Stale 
Auditors. 


3S 


FIRST  REPORT 


During  the  period  covered  by  this  report  tlie  Department  has  been 
more  than  self-snstaining,  as  an  analysis  of  the  foUowing  financial  state- 
ment will  show : 


DETAILED  STATEMENT  OF  RECEIPTS  FROM  ORGANIZATION  OF  COMMISSION. 
August  15,  1913  to  June  30,  1918. 


For  years  ending  June  30, 

Total 
since  or- 

1914. 

1915. 

1916. 

1917. 

1918. 

ganization. 

88,247  46 

195  00 

3, 150  00 

921  00 

$4,430  77 
375  00 
100  00 
579  00 
125  00 
30  44 

S13,337  82 

148  00 

1,698  00 

1.043  75 

809  82 

36  25 

$21,656  76 

253  00 

4,700  00 

2,058  00 

2,161  56 

54  15 

66 

$16,422  52 

441  00 

2, 852  00 

1,707  00 

9,225  91 

102  56 

610  60 

c3,010  64 

$64,095  33 

1,412  00 

12,500  00 

Agents'  license  fees                 

6,308  75 

al2,322  29 

11  64 

235  04 

boil  26 

3,010  64 

$12,525  10 

$5,640  21 

$17,073  64 

$30,884  13 

$34,372  23 

$100,495  31 

Aggregate  since  August  15,  1913  to  June 

$100,495  31 

a— This  item  includes  $11,124.20,  being  amount  deposited  with  State  Treasurer  by  companies  for  examination  and  disbursed 
on  approval  of  Commission. 

b— This  item  made  up  of  reimbursements  on  account  of  overpayments  of  $2.95,  also  reimbursements  from  companies  for 
services  and  expenses  of  examiners,  $376.65,  and  $231.00  for  services  not  deposited  with  State  Treasurer  June  30,  1918. 

c— This  item  includes  $2,058.32  held  as  Trust  Fund  by  order  of  Commission  for  the  Dripping  Springs  Copper  Company. 


DETAILED  STATEMENT  OF  DISBURSEMENTS  FROM  ORGANIZ.\TION  OF  COMMISSION. 
August  15,  1913  to  June  30,  W18. 


Source  of  disburscnients. 

For  years  ending  Ju 

le  30, 

Total 
since  or- 

1914. 

1915. 

1916. 

1917. 

1918. 

$2,557  15 
50  28 

$2,000  00 

$4,271  73 
161  OS 

476  00 

179  93 

100  00 

6  00 

$4,944  90 
113  89 

709  60 
512  96 
344  14 

$14,728  49 
2,402  94 

4,087  06 
2,288  87 
2,475  71 

$28,502  27 

2,728  19 

Special  examinations: 
Per  diem 

5,272  66 

2,981  76 

2,919  85 

10  00 
40  74 
13  31 
174  70 

16  00 

381  92 

4  82 

133  50 

422  66 

57 
2  50 

3  59 
50  00 

20  20 

2,545  48 

50  00 

42  49 

2,906  18 

Membership  fee  National  Association 

50  00 

Postage                     

120  00 
189  70 
290  00 

28  00 
15  90 
340  00 

208  00 
231  11 
390  89 

181  34 

245  30 

2,059  27 

325  02 
246  39 

'931  45 
1,235  87 

578  84 
245  13 

862  36 

928  40 

4,369  59 

931  45 

887  35 
105  00 
19  15 

355  62 
160  00 
23  10 

359  10 
277  95 
50  70 

366  21 
432  30 
86  73 

3,204  15 

1,554  09 

•  424  81 

Totals  by  years 

$4,457  38 

$2,925  69 

$6,766  08 

$10,516  88 

$33,450  88 

*$58, 116  91 

Aggregate  since  August  15,  1913  to  June 

$58,116  91 

*0f  this  item  $10,103.88  represents  amount  paid  on  account  of  examinations  on  vouchers  approved  by  the  Michigan  Securities 
Commission,  the  balance  being  amount  paid  on  warrants  of  the  Auditor  General. 


MIClIKiAX   SKCrUlTlIlS   COMMISSION 


STATEMENT  OF  RECEIPTS  AND  DISBURSEMENTS  on  account  of  Examinations  of  Investment  Companies  for  ycal 
ending  June  30,  1918;  number  of  examinations  made  each  month,  amount  expended  for  services  and  expcnseH  and  amounr 
returned  to  Investment  Companies  during  same  period. 

July  1.  1!I17  t>i  June  :!0,  1  )1S. 


Received 

for 

examinations. 

Number  of 
companies. 

Vouchers 
drawn. 

Number  of 
companies 
examined. 

Expenses. 

Services. 

Returned  to 
companies. 

Total 

1917. 
July      .'. .. 

$725  00 

7 

S475  00 

3 

$200  00 

$150  00 

$125  00 

$475  00 

August.... 

Bcpt 

Oct 

589  75 

781  25 

10 

135  87 

469  75 

178  63 

784  25 

727  70 

7 

649  35 

4 

51  90 

165  00 

228  30 

448  20 

906  12 

9 

538  49 

5 

191  24 

380  00 

165  40 

739  04 

Nov 

260  42 

3 

•     1,001  90 

10 

326  39 

339  52 

335  99 

1,001  90 

Dec 

410  00 

5 

335  00 

5 

24  84 

lOD  00 

201  IG 

1918. 
Jan 

341  04 

4 

397  14 

6 

161  85 

193  50 

38  70 

397  14 

Feb 

1,370  00 

13 

625  31 

9 

131  96 

319  00 

171  35 

625  31 

March 

875  00 

9 

1,282  69 

11 

146  24 

450  79 

610  66 

1,207  69 

April 

May 

June 

1,127  20 

14 

767  20 

7 

336  85 

314  50 

115  85 

767  20 

249  35 

3 

980  48 

15 

260  17 

•    617  00 

178  31 

1 , 055  48 

1,565  38 

11 

1,014  83 

9 

309  56 

579  00 

126  27 

1,014  83 

$9, 146  96 

91 

$8,851  61 

94 

$2,288  87 

84,087  06 

$2,475  71 

$8,851  64 

40  FIRST  REPORT 


KECOMMENDATIONS  FOR  AMENDMENTS  TO  "BLUE  SKY  LAW." 

1.  That  the  provisions  of  the  Act  covering  the  exemptions  sliould 
apply  only  to  UNSECURED  COMMERCIAL  PAPER  ISSUED  IN  THE 
NATURE  OF  ONE  TRANSACTION  TO  A  BANK  OR  TRUST  COM- 
PANY, and  should  not  apply  where  notes  are  to  be  sold  to  the  public. 

2.  That  Section  10  shoidd  be  amended  to  clarify  provision  that 
"continued  and  successive  transactions  of  a  similar  nature"  should  be 
construed  to  apply  to  Dot  more  than  one  transaction. 

3.  That  the  ambiguity  of  present  law  in  reference  to  tiling  fee  should 
be  cleared  up  to  provide  that  the  fee  should  be  computed  upon  the  basis 
of  the  unissued  and  unsold  securities. 

4.  That  notes  secured  by  mortgages  under  Subdivision  F,  Section  3, 
should  not  be  exempted  from  the  operation  of  the  Act  where  the  notes 
are  offered  to  the  public  on  mortgages  of  real  or  ])ersonal  property 
situated  outside  the  State. 

5.  That  dealers  should  be  retpiired  to  furnish  a  monthly  report  of 
securities  dealt  or  traded  in. 

0.  That  dealers'  books  sliould  be  examined  by  Department  examiners 
at  dealers'  expense,  the  same  as  investment  companies. 

7.  That  the  advertising  of  securities  by  dealers  should  be  construed 
to  ijiclude  stock  lists,  market  letters,  and  all  other  advertising  matter 
of  whatsoever  nature. 


MICHIGAN  SECURITIES  COMMISSION  41 


INVESTMENT  COMPANIES  APPROVED  BY  THE 
MICHIGAN  SECURITIES  COMMISSION. 

The  following  is  a  list  of  the  Investment  Companies  that  have  been  ap- 
proved by  the  Michigan  Securities  Commission  to  July  1,  1918.  An 
approval  does  not  necessarily  carry  the  right  to  sell  all  securities  which  a 
company  can  issue.  Certain  companies  have  permission  to  sell  bonds 
only,  others  to  sell  preferred  stock  and  not  common  stock.  Every 
company  that  has  been  approved  is  in  possession  of  a  Certificate  of 
Approval  which  described  its  rights  under  the  order  of  approval. 

Acason  Motor  Truck  Company Detroit,  Mich. 

Acme  Belting  Company Niles,  Mich. 

Acme  Motor  Truck  Company Cadillac,  Mich. 

Acme  Motor  Truck  Company Detroit,  Mich. 

Adrian  Steel  Castings  Company Adrian,  Mich. 

Advocate  Publishing  Company Kalamazoo,  Mich. 

Aetna  Motor  Truck  Company Detroit,  Mich. 

Agricultural  Lands,  Inc Detroit,  Mich. 

Agricultural      Life      Insurance      Company      of 

America Bay  City,  Mich. 

Ainsworth  Manufacturing  Company Detroit,  Mich. 

Air-O-Flex  Automobile  Corporation Detroit,  Mich. 

Alfalfa  Cereal  Company Detroit,  Mich. 

All  Season  Body  Company. Jackson,  Mich. 

Alhambra  Theatre,  Inc Detroit,  Mich. 

Alter  Motor  Car  Company Plymouth,  Mich. 

American  Box  Board  Company Grand  Rapids,  Mich. 

American  Cash  Register  Company. Saginaw,  Mich. 

American  Commerce  Association  .  .  .  .' Chicago,  111. 

American  Commercial  Car  Company Detroit,  Mich. 

American  Forging  &  Socket  Company Pontiac,  Mich. 

American  Garment  Cleaning  Company Detroit,  IMich. 

American  Motor  Truck  Company Detroit,  Mich. 

American  Prcssweld  Radiator  Corporation Detroit,  Mich. 

American  Realty  Corporation Detroit,  jMich. 

American  Sign  Company Kalamazoo,  Mich. 

American  Specialty  Company Grand  Rapids,  Mich. 

Anglin  (Margaret)  Picture  Corporation,  Inc.  .  .  .New  York,  N.  Y. 

Ann  Arbor  Dairy  Company Ann  Arl)or,  Mich. 

Ann  Arbor  Machine  Company Ann  Arbor,  Mich. 

Apartment  Construction  Company Detroit,  Mich. 

Armour  &  Company Chicago,  III. 

Artesia  Water  Company Detroit,  Midi. 

Asco  Cigar  Company Detroit,  Mich. 

Aspinwall  Manufacturing  Company Jackson,  Midi. 

Assets  Realizing  Mines  Corporation Los  Angeles,  Cal. 


42  FIRST  REPORT 

Associated  Builders  Company Detroit,  Mich. 

Atlas  Manufacturing  Company Detroit,  Mich. 

Automatic  Bookkeeping  Register  Company.  .  .  .Kalamazoo,  Mich. 

Auto  City  Realty  Company Highland  Park,  Mich. 

Automobile  Crankshaft  Corporation Detroit,  Mich. 

Automobile  Cycle  Car  Company Detroit,  Mich. 

Automotive  Manufacturing  Company Detroit,  Mich. 

Auto  Light  Control  Company Grand  Rapids,  Mich. 

Auto  Wheel  Company Lansing,  Mich. 

Avalon  Park  Land  Company Detroit,  Mich. 

Baker,  (Martha  R.)  Company Charlevoix,  Mich. 

Baker- Vawter  Company Benton  Harbor,  Mich. 

Bancroft  Hotel  Company Saginaw,  Mich. 

Bardeen  Paper  Company Otsego,  Mich. 

Barley  Motor  Car  Company Chicago,  111. 

Bay  City  Sand  &  Gravel  Company Bay  City,  Mich. 

Barnes  Wire  Fence  Company Detroit,  Mich. 

Barry- Wilson  Company Kansas  City,  Mo. 

Barstow-San  Antonio  Oil  Company Detroit,  Mich. 

Beach-Cross  Body  Company Detroit,  Mich. 

Bellevue  Foundry  Company Detroit,  Mich. 

Belle  Isle  Coliseum  Company Detroit,  Mich. 

Bellevue  Co-Operative  Elevator  &  Warehouse 

Co Bellevue,  Mich. 

Benton  Harbor  Malleable  Foundry  Company .  .  Benton  Harbor,  Mich 

Biggam  Trailer  Corporation Detroit,  Mich. 

Birmingham    Creamery    &    Ice    Manufacturing 

Co Birmingham,  Mich. 

Birwood  Land  Company Detroit,  Mich. 

Black,  F.  A.  Company Mt.  Clemens,  Mich. 

Black's  Money  Saving  Mail  Order  Company Pigeon,  Mich. 

Blashfield  Furnace  Company Jackson,  Mich. 

Blessed  Lunch  Company Detroit,  Mich. 

Bolles  (J.  E.)  Iron  &  Wire  Works Detroit,  Mich. 

Bollstrom  Engineering  Company Detroit,  Mich. 

Bond  Steel  Post  Company Adrian,  Mich. 

Bowling  Dental  Manufacturing  Company Detroit,  Mich. 

Breitung  Hematite  Mining  Company,  Ltd Marquette,  Mich. 

Breitung  Iron  Company New  York,  N.  Y. 

Breitung  Mines  Corporation New  York,  N.  Y. 

Brent  Creek  Co-Operative  Elevator  Company. .  .  Brent  Creek,  Mich. 

Brown  Corporation Portland,  Maine. 

Brown-Hawkins  Lumber  Company Detroit,  Mich. 

Browning  Realty  Company Grand  Rapids,  Mich. 

Brownwall  Engine  &  Pulley  Company  .' Holland,  Mich. 

Buhl  Sons  Company Detroit,  Mich. 

Buhl  Stamping  Company Detroit,  Mich. 

Buller-Millikin  Company Detroit,  Mich. 

Bureau  of  Credits Detroit,  Mich. 


TkliniKJAX  SECT^ItlTIES  COMMISSION  43 

Biinto  Brothers Chicago,  111. 

Biirch,  A.  F.  Company Grand  l^ipids,  Mich. 

Bush  &  Lane  Piano  Company .^ Holland,  Mich. 

Butler  Iron  Company Chicago,  111. 

Butte  it  Great  Falls  Mining  Company Butte,  Montana. 

Byron  Typewriter  Cabinet  Company Detroit,  Mich. 

Cadillac  Auto  Truck  Company Cadillac,  Mich. 

Cadillac  Lumber  Company Cadillac,  Mich. 

Cadillac  Machine  Company Cadillac,  Mich. 

Cadillac  Theatre  Company Detroit,  Mich. 

Calumet  Petroleum  Company Calumet,  Mich. 

Campau  Square  Building  Company Grand  Rapids,  Mich. 

Campbell  (Manson)  &  Sons  Company Detroit,  Mich. 

Campbell,  Wyant  &  Cannon  Foundry  Company. Muskegon,  Mich. 

Capital  Castings  Company Lansing,  Mich. 

C.  A.  S.  Sales  Company Detroit,  Mich. 

Carmichael,  R.  A.  &  Company Detroit,  Mich. 

Carrier  Realty  Company Detroit,  Mich. 

Cascade  Lead-Silver  Mines,  Ltd Toronto,  Ont. 

Caro  Farmers  Co-Operative  Elevator  Company  .  Caro,  Mich. 

Cash,  F.  H.  Company Bay  City,  Mich. 

Cass  Lake  Highlands  Company Detroit,  Mich. 

Cedar  River  Land  Company Lansing,  Mich. 

Cement  Casket  Manufacturing  Company Albion,  Mich. 

Central  Michigan  Clay  Products  Company.  .  .  .  Williamston,  Mich. 

Central  Warehouse  Company Saginaw,  Mich. 

Centreville  Theatre  Company Centreville,  Mich. 

Cinch  Safetv  Razor  Company Detroit,  Mich. 

Chalmers  Motor  Corporation Detroit,  Mich. 

Champerado  Copper  Mining  Company Chicago,  111. 

Chattel  Loan  Company Grand  Rapids.  Mich. 

Chesaning  Farmers  Elevator  Company Chesaning,  Mich. 

City  Pattern  Works Detroit,-  Mich. 

Clark  Engine  &  Boiler  Company Kalamazoo,  Mn-h. 

Clay  Products  Company Detroit,  Mich. 

Clayton  &  Lambert  Manufacturing  Company.  .  .Detroit,  Mich. 

Clifford  Realty  Company : Detroit,  Mich. 

Columbia      Convention      &       Dancing      Hall 

Company Detroit,  Mich. 

Columbia  Motors  Company Detroit,  Mich. 

Columbus  Mutual  Life  Insurance  Company.  . .  .Columbus,  Ohio. 

Commercial  Finance  Corporation  of  Detroit ....  Detroit,  Mich. 

Commonwealth  Finance  Coiporation New  York,  N.  Y. 

Commonwealth    Hotel    Construction    Corpora- 
tion  >«'t^^v  York,  N.  \  . 

Consolidated  Car  Company Detroit,  Mich. 

Consumers  Co-Operative  Coal  Company Detroit,  Mich. 

Cook  Standard  Tool  Company Kaltimazoo,  Mich. 

Co-Operative  Elevator  &  Milling  Company Pigeon,  Mich. 

Co-Operative  Stock  Ranch  Company Des  Moines,  Iowa. 


44  FIRST  REPORT 

Culver  Land  &  Cattle  Company Detroit,  Mich. 

Davenport  Realty  Company Detroit,  Mich, 

Davidson  Building  Company Bay  City,  Mich. 

Davis  5  and  10c  Stores  Company Detroit,  Mich. 

Dayton  Coal,  Iron  &  Railway  Company Dayton,  Tenn. 

Del-The  Amusement  Company .  Detroit,  Mich. 

DeLaney  (Paul)  Company Brocton,  N.  Y. 

Delta  Land  &  Timber  Company Kansas  City,  Mo. 

Demming  Mines  Company Nampa,  Idaho. 

Dennis  Canadian  Company Grand  Rapids,  Mich. 

Dennos  Food  Sales  Company Chicago,  111. 

Detroit  Ball  Valve  Company Detroit,  Mich. 

Detroit  Electric  Welder  Company Lansing,  Mich. 

Detroit  Finance  Company Detroit,  Mich. 

Detroit  Heater  Corporation,  Inc Detroit,  Mich. 

Detroit  Home  Building  Company Detroit,  Mich. 

Detroit  Hotel  Company Detroit,  Mich. 

Detroit  Intensive  Gardens,  Inc Detroit,  Mich. 

Detroit  Lace  Manufacturing  Company Detroit,  Mich. 

Detroit  Life  Insurance  Company Detroit,  Mich. 

Detroit  Mineral  Water  Company Detroit,  Mich. 

Detroit  Mortgage  Corporation Detroit,  Mich. 

Detroit  Piano  Company Detroit,  Mich. 

Detroit  Pneumatic  Chuck  Company Detroit,  Mich. 

Detroit  Pressed  Steel  Company Detroit,  Mich. 

Detroit  Realty  Owners  Company Detroit,  Mich. 

Detroit  Sanitary  Closet  Company Detroit,  Mich. 

Detroit  Starter  Company Detroit,  Mich. 

Detroit  Sulphite  Pulp  &  Paper  Company Detroit,  Mich. 

Detroit  Times Detroit,  Mich. 

Detroit  Torch  &  Manufacturing  Company Detroit,  Mich. 

Detroit  Valve  &  Fittings  Company Detroit,  Mich. 

Detroit  Weatherproof  Body  Company ........  Detroit,  Mich. 

Detroit       Wire       Fabric       &       Manufacturing 

Company Detroit,  Mich. 

Detroit- Wyandotte  Motor  Truck  Company. .  .  .Wyandotte,  Mich. 

Devoe  &  Raynolds  Co.,  Inc Brooklyn,  N.  Y. 

Dibble,  A.  E.  Building  Company Detroit,  Mich. 

Differential  Clock  Company Chicago,  111. 

Dionol  Company Detroit,  Mich. 

Ditzler  Color  Company Detroit,  Mich. 

Dix  Theatre  Company Detroit,  Mich. 

Doble-Detroit  Steam  Motors  Company Detroit,  Mich. 

Donner  Steamship  Company Cleveland,  Ohio. 

Drabold-Mott  Manufacturing  Company Detroit,  Mich. 

Dripping  Springs  Copper  Company Los  Angeles,  Cal. 

Druggists  Co-Operative  Association Chicago,  111. 

Drury  Lane  Theatre  Company Detroit,  Mich. 

Dunn  Realty  Company Detroit,  Mich. 

Duplex  Truck  Company Lansing,  Mich. 


MICHIGAN  SECURITIES  COMMISSION  45 

East  Side  Creamery  Company Detroit,  Mich. 

Economy  Drawing  Table  Company Adrian,  Mich. 

Educators  Association Ann  Arl)or,  Midi. 

Edwards  &  Chamberlain  Hardware  Company.  .Kalamazoo,  Mich. 

Eddy  Paper  Company Three  Kivers,  Mich. 

Electric  Specialties  Manufacturing  Company..  .Benton  Harbor,  Mich. 

Electrograph  Company Detroit,  Mich. 

lOlgin  Motor  Car  Corporation ('hicago.  111. 

Elkhart  Manufacturing  Company Monroe,  Mich. 

l<]lliott  Machine  Company (Jrand  Rapids,  Mich. 

I'hnerson  Motor  Truck  Company Detroit,  Mich. 

ICmery  Cigar  Company Battle  C'reek,  Mich. 

Emond,  Klein  &  Company Detroit,  Mich. 

Erd  Motor  Company Saginaw,  Mich. 

Esco  Manufacturing  Company Detroit,  Mich. 

Essex  Estates  Corporation Jackson,  Mich. 

Evertite  Nut  Corporation New  York,  N.  Y. 

F.  Car  Service  Association Detroit,  Mich. 

Fairgrove  Farmers  Co-Operative  Elevator  Co.  .Fairgrove,  Mich. 

Fair  Round  Real  Estate  Company Detroit,  Mich. 

Farmers  Auto  &  Machinery  Company Bay  City,  Mich. 

Farmers  Co-Operative  Elevator  Company Laingsburg,  Mich? 

Farmers  Co-Operative  Elevator  Co.  of  Corunna  .  Corunna,  Mich. 

Farmers  Elevator  Company  of  Marshall Marshall,  Mich. 

Federal  Syndicate  Copper  Company.  .  .  •. Calumet,  Mich. 

Fenwick  Elevator  Company Fenwick,  Mich. 

Ferndale  Cemetery  Association Wyandotte,  Mich. 

Ferry  Field  Theatre  Company Detroit,  Mich. 

Fidelity  Mortgage  &  Bond  Corporation Detroit,  Mich. 

Fidelity  Motion  Picture  Company Detroit,  INIich. 

Field  Motor  Company Grand  Rapids,  ]\Iich. 

First  Preference  Detroit  Gray  Iron  Foundry  Co.  Detroit,  Mich. 

Five  Hundred  Investors  Company Detroit,  Mich. 

Flanders  Company Detroit,  Mich. 

Flint  Land  Company,  Ltd FHnt,  Mich. 

Flushing      Farmers      Co-Operative      Elevator 

Company Flushing,  Mich. 

Ford  View  Realty  Company Detroit,  Mich. 

Forge  Products  Corporation New  York,  N.  Y. 

Fort  Dearborn  Casualty  Company Chicago,  111. 

Fort  Dearborn  Life  Insurance  Company Chicago,  111. 

Fort  Shelby  Hotel  Company Detroit,  ]\Iich. 

Fosburgh  Lumber  Company Norfolk,  Va. 

Four  Drive  Tractor  Company Big  Rapids.  Mich. 

Fox,  (Maurice  W.)  &  Company Detroit,  Mich. 

Fox  Typewriter  Company Grand  Rapids,  Mich. 

Frankenlust  Fuel  &  Feed  Company Bay  City,  Mich. 

Franklin  Theatre  Company Saginaw,  Mich. 

Fremont  Canning  Company Fremont,  Mich. 

Frost  Gear  &  Forge  Company Jackson,  Mich. 

Fuel  Saving  Heater  Corporation Windsor,  Out. 


46  FIRST  REPORT 

Fuller's  Earth  Company  of  America Detroit,  Mich. 

Fuller  &  Sons  Manufacturing  Company Kalamazoo,  Mich. 

Gaffke  Realty  &  Building  Company Hamtramck,  Mich. 

Gage  Printing  Company,  Ltd Battle  Creek,  Mich. 

Galbraith  Home  Company Pontiac,  Mich. 

Gardiner  Theatre  Equipment  Company Detroit,  Mich. 

Gas  Office  Company Detroit,  Mich. 

Gas  Oil  Stove  Company Detroit,  Mich. 

Gajdord  Stores  Company Detroit,  Mich. 

General  Casualty  &  Surety  Company Detroit,  Mich. 

General  Stores  Companj'  of  Pontiac Pontiac,  Mich. 

General  Stores  Corporation Ypsilanti,  Mich. 

German  American  Book  Company Detroit,  Mich. 

Gibson  Mandolin  Guitar  Company Kalamazoo,  Mich. 

Glaser  Bros.,  Inc Detroit,  Mich. 

Gleaner  Clearing  House  Association Detroit,  Mich. 

Globe  Realt}"  Company Grand  Rapids,  Mich. 

Golden  Age  Junior  Mining  Company Lansing,  Mich. 

Golden  Belt  Refining  Company Oklahoma  City,  Okla. 

Goodale  Company Kalamazoo,  Mich. 

Goodj^ear  Tire  &  Rubber  Company Akron,  Ohio. 

Graham  Roller  Bearing  Company Coudersport,  Penn. 

Grand  Boulevard  Theatre  Company Detroit,  Mich. 

Grand  Ledge  Milk  Company Grand  Ledge,  Mich. 

Grand      Rapids      Magnetic      Mineral      Water 

Company Grand  Rapids,  Mich. 

Grand  Rapids  Savings  Building  Company Grand  Rapids,  Mich. 

Grand  Rapids  Varnish  Company Grand  Rapids,  Mich. 

Grand  Rapids  Wholesale  Groceiy  Company Grand  Rapids,  Mich. 

Grand  Rapids  Wood  Finishing  Company Grand  Rapids,  Mich. 

Grand  Traverse  Fruit  Company Detroit,  Mich. 

Grange  Life  Assurance  Association Lansing,  Mich. 

Grant  Motor  Car  Corporation Findlay,  Ohio. 

Gratiot  Central  Market  Company Detroit,  Mich. 

Great  Lakes  Stone  &  Lime  Company .Alpena,  Mich. 

Greenfield  Improvement  &  Sales  Company.  .  .  .Detroit.  Mich. 

Great  Lakes  Transportation  Company Midland,  Canada. 

Green-Whiles  Mail  Order  House Detroit,  Mich. 

Greilick  Manufacturing  Company Traverse  City,  Mich. 

Grocers'  Baking  Company Grand  Rapids,  Mich. 

Guarant}^  Title  &  Mortgage  Company Flint,  Mich. 

Guardian  Frigerator  Company Detroit,  Mich. 

Hachmuth  Pure  Food  Company .  .  Comstock  Park,  Mich. 

Hackett  Motor  Car  Company Grand  Rapids,  Mich. 

Hall,  (C.  M.)  Lamp  Company Detroit,  Mich. 

Hall,  (W.  F.)  Printing  Company Chicago,  111. 

Hamilton  Motors  Company Grand  Haven,  Mich. 

Hancock  Public  Hospital '.  .  .  Hancock,  Mich. 

Hanover  Farmers'  Co-Operative  Association .  .  .  Hanover,  Mich. 

Hardie  Manufacturing  Company Hudson,  Mich. 

Harris  Bros.  Seed  Company Mt.  Pleasant,  Mich. 

Harris  &  Warren  Amusement  Company Wyandotte,  Mich. 


MICHIGAN  SECURITIES  COMMISSION  47 

Harrouii  Motors  Corporation Wilniiiif^ton,  Delaware. 

Harrow,  (A.  T.)  Tractor  Company Detroit,  Mich. 

Haskelite  Manufacturing  Company Grand  llapids,  Mich. 

Hasseldahl-Lanc  Company Detroit,  Mich. 

Hawthorne  Paper  Company  .  .  .  .' Kahimazoo,  Mich. 

Hayes-Ionia  Company Ionia,  Mich. 

Hayes  Manufacturing  Company Detroit,  Mich. 

Heath  Carbureter  (^Corporation New  York,  N.  Y. 

Hemingway  (H.  C.)  &  Company Syracuse,  N.  Y. 

Henderson  Co-Operative  Elevator  Company.  .  .Ihniderson,  Mich. 

Hermitage  Realty  Company. Grand  Rapids,  Mich. 

Herzog  Art  Furniture  Company Saginaw,  Mich. 

Heystek  &  Canfield  Company Grand  Rapids,  Mich. 

Hidden  Treasure  Mining  &  Leasing  Company.  .  .  Colo.  Springs,  Colo. 

Higrade  Motors  Company Portland,  Maine. 

Hilke  Baking  Company Detroit,  Mich. 

Hill-Curtis  Company Kalamazoo,  Mich. 

Hillsdale  Warehouse  Company Hillsdale,  Mich. 

Holland  Aniline  Company Holland,  Mich. 

Holland  Shoe  Company Holland,  Mich. 

Holland-St.  Louis  Sugar  Company Holland,  Mich. 

Holzworth  Company Buffalo,  N.  Y. 

Home  Builders Flint,  Mich. 

Home  Furnace  Company. Holland  Mich. 

Hoosier  Construction  Company Detroit,, Mich. 

Houscman-Spitzlej'  Corporation Detroit,  Mich. 

Howell  Electric  Motors  Company Howell,  Mich. 

Hydraulic  Oil  Systems  Corporation Detroit,  Mich. 

Imperial  Chemical  Company .  .Grand  Rapids,  Mich. 

Industrial  Terminal  Corporation Detroit,  Mich. 

Inland  Metals  Products  Company Detroit,  Mich. 

International  Milk  Products  Company Detroit,  Mich. 

International  Money  Machine  Company .Terre  Haute,  Ind. 

Inter-State  Fire  Insurance  Company Detroit,  Mich. 

Inter-State  Oil  Company Los  Angeles,  Cal. 

Invader  Oil  &  Refining  Company Muskogee,  Okla. 

Jackson  Co-Operative  Realty  Company Jackson,  Mich. 

Jackson  ^Munitions  Corporation Jackson,  Mich. 

Jefferson  Hall  Company Detroit,  Mich. 

Jefferson  Hotel  Company Detroit,  :\Iich. 

Jeffery-Dewitt  Company Hamtramck,  Mich. 

Jennings  Piano  Company Ann  Arbor,  Mich. 

Jerome  Victor  Extension  Copper  Company.  .  .  .Laurium,  Mich. 

Jones-Regan  Company Detroit,  Mich. 

Kalamazoo  Co-Operative  Society Kalamazoo,  Mich. 

Kalamazoo  Corset  Company Kalamazoo,  Mich. 

Kalamazoo  Gravel  &  Sand  Company Kalamazoo,  Mich. 

Kalamazoo  Ice  &  Fuel  Company Kalamazoo,  Mich. 

Kalamazoo  Laundry  Company •.  . Kalamazoo,  Mich. 

Kalamazoo  Loose  Leaf  Binder  Company Kalamazoo,  Mich. 

Kalamazoo  Malleable  Iron  Company Kalamazoo,  Mich. 

Kalamazoo  Paper  Company Kalamazoo,  Mich. 


48  FIRST  REPORT 

Kalamazoo  Railway  Supply  Company Kalamazoo,  Mich. 

Kalamazoo  Stationery  Company Kalamazoo,  Mich. 

Kalamazoo  Telegraph  Press  Company Kalamazoo,  Mich. 

Kalamazoo  Vegetable  Parchment  Company. . .  .Kalamazoo,  Mich. 

Keenan  Construction  Company Detroit,  Mich. 

Kelly  Real  Estate  Company Iron  River,  Mich. 

Kelly-Roth  Company Chicago,  111. 

Kent  State  Garage  &  Supply  Company Grand  Rapids,  Mich. 

Kenwood  Gardens  Land  Company Detroit,  Mich. 

Kilgus  Realty  Company Detroit,  Mich. 

King  Oil  CJompany Seattle,  Wash. 

Kitchigami  Gold  Development  Company Calumet,  Mich. 

Koering  Cyaniding  Process  Company Detroit,  Mich. 

Koppin  Realty  Investment  Company Detroit,  Mich. 

Labadie-Russell    Motion    Picture    Productions, 

Inc Detroit,  Mich. 

LaBell  Funeral  Service,  Inc Detroit,  Mich. 

Ladd,  (John  W.)  Company Detroit,  Mich. 

Lakeside  Cranberry  Company Alpena,  Mich. 

Lane  Motor  Truck  Company Kalamazoo,  Mich. 

Lansing  Body  Company Lansing,  Mich. 

Lansing  Chemical  Company Lansing,  Mich. 

Lansing  Foundry  Company .Lansing,  Mich. 

Lape  (Dr.)  Veterinary  Company Adrian,  Mich. 

Lapham,  (S.  D.)  &  Company,  Inc Dearborn,  Mich. 

Larrowe  Realty  Company Detroit,  Mich. 

LaSalle  Extension  University Chicago,  111. 

Lawrence  Co-Operative  Company Lawrence,  Mich. 

Lenhart  Bros.  Lunch  Company Detroit,  Mich. 

Leonard,  (H.  R.)  Furniture  Company Detroit,  Mich. 

Leonard  Tractor  Company Detroit,  Mich. 

Leonard  Warehouses,  Inc Detroit,  Mich. 

Lewis-Geer  Manufacturing  Company.  .......  .  Ypsilanti,  Mich. 

Lincoln  Motor  Company Detroit,  Mich. 

Lincoln  Scjuare  Building  Company Detroit,  Mich. 

Lin-Del  Company,  Inc Buffalo,  N.  Y. 

Linderman  Steel  &  Machine  Company Muskegon,  Mich. 

Lindquist,  (Francis  O.)  Company '. Grand  Rapids,  Mich. 

Litho-Marble  Company Detroit,  Mich. 

Litliuanian  Co-Operative  Association Detroit,  Mich. 

Litscher,  (C.  J.)  Electric  Company Grand  Rapids,  Mich. 

Little  Wonder  Stove  Company Detroit,  Mich. 

Lock-Tite  Manufacturing  Company Battle  Creek,  Mich. 

Lo-Vis  Company Kalamazoo,  Mich. 

Luck  Tire  &  Manufacturing  Company Jonesville,  Mich. 

Mack  (Joseph  Mack)  Printing  House,  Inc Detroit,  Mich. 

Mackie-Olney  Company Detroit,  Mich. 

Magic  Wax-Shoe  Polish  Company,  Inc Pontiac,  Mich. 

Maino  Machine  Tool  Company .  .  .  ■ Jackson,  Mich. 

Manchester  Apartment  Company Detroit,  Mich. 

Manistique  Cooperage  Company Manistique,  Mich. 

Manophone  Corporation Adrian,  Mich. 


MICHIGAN  SECURITIES  COMMISSION  40 

Manufacturers  Home  Supply  Company Detroit,  Mich. 

Manufacturer  Publishing  Company Detroit,  Mich. 

Mapl-Flake  Mills Battle  Creek,  Mi(;h^ 

Marlette      Farmers      Co-Operative      Elevator 

Company Marlette,  Mich. 

Marolf-Oberg  Real  Estate  Company Iron  River,  Mich. 

Marquette  National  Fire  Insurance  Company. .  .Chicago,  111. 

Marshall  Castings  Company South  Haven,  Mich. 

Mason  Tire  &  Rubber  Company Cleveland,  Ohio. 

Maximotor  Company Detroit,  Mich. 

Maxine  Theatre  Company,  Inc Detroit,  Mich. 

McCord  Manufacturing  Company Detroit,  Mich. 

McCuen-Reynolds  Company Jackson,  Mich. 

McDonough  Automatic  Regulator  Company. .  .Detroit,  Mich. 

McKeighan  Auto  Sales  Company Flint,  Mich. 

McLen  Printing  Company Detroit,  Mich. 

Melling  Forging  Company Lansing,  Mich. 

Menominee  Electric  Manufacturing  Company.  .Chicago,  111. 

Merchants  Baking  Company Detroit,  Mich. 

Merchants  Publishing  Company Kalamazoo,  Mich. 

Metal  Sign  Board  Advertising  Company Kalamazoo,  Mich. 

Metropolitan  Builders Highland  Park,  Mich. 

Michigan  Silver  Black  Fox  Company Gaylord,  Mich. 

Michigan  Associates Detroit,  Mich. 

Michigan  Bond  &  Mortgage  Company,  Ltd Detroit,  Mich. 

Michigan  Brass  &  Electric  Company Lansing,  Mich. 

Michigan  Carton  Company Battle  Creek,  Mich. 

Midland  Casualty  Company Chicago,  111. 

Michigan  City  Ice  &  Cold  Storage  Company.  .  .  .  Michigan  City,  Ind. 

Michigan  Crown  Fender  Company Ypsilanti,  Mich. 

Michigan  Dairy  Products  Association Edmore,  Mich. 

Michigan  Drop  Forge  Company Pontiac,  Mich. 

Michigan  Employers  Casualty  Company Lansing,  Mich. 

Michigan  Hearse  &  Motor  Company Grand  Rapids,  Mich. 

Michigan  Live  Stock  Insurance  Company Saginaw,  Mich. 

Michigan  Loan  Society  of  Delaware Philadelphia,  Pa. 

Michigan  MiUtary  Academy Island  Lake,  Mich. 

Midway  Mining  &  Milling  Company Patmiin,  Arizona. 

Michigan  Motor  Specialties  Company Detroit,  Mich. 

Michigan  No-Break  Egg  Carrier  Company Detroit,  Mich. 

Michigan  Silo  Company Kalamazoo,  Mich. 

Michigan  Zinc  Coat  Company Detroit,  Mich. 

Mineral  Oil  Paint  Company Detroit,  Mich. 

Minook  Gold  Dredging  Company Seattle,  \Vasli. 

Mitchell  Motors  Company,  Inc New  York   iV  \  . 

Modern  Apartments  Company Detroit,  Mich. 

Monarch  Rubber  Company Chicago,  111. 

Monorail  Company  of  America Detroit,  Mich. 

Monroe  Binder  Board  Company Monroe,  ^lich. 

Monroe  Motor  Company Pontiac,  Mich 

Moose  Bay  Fur  &  Trading  Company Tacoma,  Wash. 


50  FIRST  REPORT 

Morse-Beauregard  Manufacturing  Company.  .  .Detroit,  Mich. 

Morse  Investment  Company Detroit,  Mich. 

Most-Houghton  Company Detroit,  Mich. 

Motor  Products  Corporation Detroit  &  New  York. 

Motschall  Company Detroit,  Mich. 

Mt.  Clemens  Driving  Club Mt.  Clemens,  Mich. 

Mt.  Clemens  Pottery  Club Mt.  Clemens,  Mich. 

Mt.  Morris  Co-Operative  Elevator  Company .  .  .  Mt.  Morris,  Mich. 

Mulkey  Salt  Company Detroit,  Mich. 

Muskegon  Home  Building  Company Muskegon,  Mich. 

Mutual  Construction  Company .  .Detroit,  Mich. 

Mutual  Land  Company Detroit,  Mich. 

National  Automatic  Music  Company Grand  Rapids,  Mich. 

National  Cooperage  Company Detroit,  Mich. 

National  Corset  Company Kalamazoo,  Mich. 

National  Educational  Bureau Ypsilanti,  Mich. 

National  Hearse  &  Motor  Company Grand  Rapids,  Mich. 

National  Incinerating  &  Columbarium  Associa- 
tion   Detroit,  Mich. 

National  Lumber  &  Manufacturing  Company.  .Detroit,  Mich. 

National  Mileometer  Company,  Ltd Detroit,  Mich. 

Neal,  (J.  M.)  Amusement  Company Lansing,  Mich. 

Nelson-Blanck  Manufacturing  Company Hamtramck,  Mich. 

Nelson,  (E.  A.)  Motor  Car  Company Detroit,  Mich. 

Nelson-Matter  Furniture  Company Grand  Rapids,  Mich. 

Newcomb-Endicott  Company Detroit,  Mich. 

New  Egyptian  Portland  Cement  Company ....  Detroit,  Mich. 

New  Era  Building  Company Detroit,  Mich. 

Newness  Manufacturing  Company Detroit,  Mich. 

Newport  Mining  Company Portland,  Maine. 

Newton  Packing  Company Detroit,  Mich. 

Noble,  (Chas.  F.)  Oil  &  Gas  Company Tulsa,  Oklahoma. 

North  American  Timber  Holding  Company. .  .  .Chicago,  111. 
Northeastern  Detroit  Amusement  Company .  .  .  Detroit,  Mich. 

Northern. Ohio  Electric  Corporation New  York,  N.  Y. 

Northern  Redwood  Lumber  Company Korbel,  Cal. 

Northway  Realty  Investment  Company ■.  .Detroit,  Mich. 

Northwestern  Ranch  &  Cattle  Company Detroit,  Mich. 

Northern  Sugar  Corporation Detroit,  Mich. 

Nyal  Company Detroit,  Mich. 

Oliver-Hanson  Company Alpena,  Mich. 

One  Hundred  Associates  Company Highland  Park,  Mich. 

Oregon  Strong  Ledge  Mining  Company Charlotte,  Mich. 

Orpheum  Theatre,  Inc Detroit,  Mich. 

Otsego  Land  Corporation Otsego,  Mich. 

Ozan-Graysonia  Lumber  Company Prescott,  Arizona. 

Ozark  Coal  Mining  Company Tacoma,  Wash. 

Paalman  Furniture  Company Grand  Rapids,  Mich. 

Packard  Motor  Car  Company Detroit,  Mich. 

Palace  Theatre  Company Detroit,  Mich. 

Palmer  Gauge  Company Jackson,  Mich. 

Pantlind  Building  Company Grand  Rapids,  Mich. 

Panthnd  Hotel  Company Grand  Rapids,  Mich. 


MICHIGAN  SECURITIES  COMMISSION  01 

Park-American  Realty  Company Kalamazoo,  Mich. 

Park  (A.  B.)  Dry  Goods  Company Adrian,  Mich. 

Park  View  Tavern Detroit,  Mich. 

Parker  Rust  Proof  Company  of  America Detroit,  Mich. 

Pathfinder  Company Indianapolis,  Ind. 

Patterson  ]\Ianufactm-ing  Company Holly,  Mich. 

Peerless  Paper  Company Dayton,  Ohio. 

Peninsular  Fire  Insurance  Company Saginaw,  Mich. 

Peninsular  Guardian  Life  &  Accident  Insurance 

Company Detroit,  Mich. 

Penn  Timber  Company Warren,  Pa. 

Peoples  Securities  Company Detroit,  Mich. 

Peoples  Store  Building  Company Manistique,  Mich. 

Perfection  Coil  Spring  Company Jackson,  Mich. 

Perfection  Devices  Manufacturing  Company.  .  .Detroit,  Mich. 

Petoskey  Portland  Cement  Company Petoskey,  Mich. 

Phillips  Metallic  Hose  Company.  .  ." Jackson,  Mich. 

Pioneer  Trailer  Corporation Detroit,  Mich. 

Piqua  Handle  &  Manufacturing  Company Piqua,  Ohio. 

Planet  Steam  Specialty  Company Detroit,  Mich. 

Plattesville  Consolidated  Lead  &  Zinc  Mining 

Co Beloit,  Wis. 

Plymouth  Motor  Castings  Company Plymouth,  Mich. 

Polish  Union  Fire  Insurance  Company Chicago,  111. 

Pollock,  Pettibone  &  Company Detroit,  Mich. 

Polonia  Theatre  Company Detroit,  Mich. 

Portage  Point  Association Grand  Rapids,  Mich. 

Porter  Manufacturing  Company Ann  Arbor,  Mich. 

Powers  National  Oil  Company Detroit,  Mich. 

Pregulman  Brothers  Packing  Company Lansing,  Mich. 

Productive  Building  Company Detroit,  Mich. 

Prudential  Mortgage  Company Detroit,  Mich. 

Pudrith  (E.  H.)  Company Detroit,  Mich. 

Pullau  Steel  Spring  Company Mt.  Clemens,  Mich. 

Purity  Candy  Company Battle  Creek,  Mich. 

Ramsey-Alton  Manufacturing  Company Portland,  Mich. 

Rational  Remedy  Company Kalamazoo,  Mich. 

Real  Estate  Holding  Company Detroit,  ]\Iich. 

Redpath  Chautauquas Chicago,  111. 

Reeman  Co-Operative  Creamery  Company.  .  .  .Reeman,  Mich. 

Regal  Collieries,  Limited Taber,  Alberta,  Canada 

Regent  Manufacturing  Company :  Detroit,  Mich. 

Regent  Theatre  Company Detroit,  Mich. 

Republic  Motor  Truck  Company Alma,  Mich. 

Retail  Adding  Machine  Sales  Company Detroit,  Mich. 

Rex  Paper  Company Comstock,  Mich. 

Hialto  Theatres  Corporation Detroit,  Mich. 

Richardson  Garment  Company Kalamazoo.  Mich. 

River  Raisin  Paper  Company Monroe,  Mich. 

Riverview  Coated  Paper  Company Kalamazoo,  Mich. 

Roach  (W.  R.)  &  Company Hart,  Mich. 

Roberts  (H.  C.)  Storage  &  Transfer  Company. .  .  Detroit,  Mich. 


52  FIRST  REPORT 

Rockwood  &  Company Brooklyn,  N.  Y. 

Rosedale  Park  Land  Company Detroit,  Mich. 

Roseland  Park  Cemetery  Association Detroit,  Mich. 

Rouse  Folding  Crate  Company,  Inc Detroit,  Mich. 

Rowe  (Henry)  Manufactm'ing  Company Newaygo,  Mich. 

Rudy  Furnace  Company , Dowagiac,  Mich. 

Safety  Changer  Company Detroit,  Mich. 

Saginaw  Hippodrome  Amusement  Company.  .  .Saginaw,  Mich.  ! 

Saginaw  Motor  Car  Company Saginaw,  Mich.  i 

Saginaw  Plate  Glass  Company Saginaw,  Mich.  | 

Saginaw  Shipbuilding  Company Saginaw,  Mich.  i 

Saginaw  Valley  Ginseng  Company Saginaw,  Mich.  ; 

Saginaw  Wood  Products  Company Gaylord,  Mich.  j 

Sanitary  Steam  Flat  Iron  Company Detroit,  Mich.  ^ 

Sauer  (C.  A.)  Company ■ Ann  Arbor,  Mich.  , 

Savigny  Company Detroit,  Mich.  ! 

Schau  Cone  Tire  Company Kalamazoo,  Mich. 

Schmid  (O.  F.)  Chemical  Company Jackson,  Mich.  -. 

Sebewaing  Co-Operative  Association Sebewaing,  Mich.  , 

Security  Life  Insurance  Company  of  Canada . .  .  Montreal,  Canada.  , 

Security  Mortgage  Company  of  America St.  Paul,  Minn.  ; 

Seneca  Co-Operative  Association Seneca,  Mich.  ! 

Service  Auto  Equipment  Company Detroit,  Mich. 

Service  Products  Machine  Company Detroit,  Mich.  i 

Shakespeare  Company Kalamazoo,  Mich. 

Shank  Fireproof  Storage  Company Grand  Rapids,  Mich. 

Shuswap  Timber  Company Detroit,  Mich. 

Signal  Motor  Truck  Company Detroit,  Mich.  i 

SIhca  Brick  Company Detroit,  Mich. 

Silver  Star  Coal  Company Kalamazoo,  Mich.  , 

Smith  (C.  A.)  Timber  Company Bay  Point,  Cal.  ; 

Smith  (Harley)  Furniture  Company Grand  Rapids,  Mich.  ; 

Smith  (Joseph  N.)  &  Company Detroit,  Mich. 

Southern  Trust  Company McAlester,  Oklahoma. 

South  Haven  Co-Operative  Society South  Haven,  Mich.  , 

Sparta  Condensed  Milk  Company Sparta,  Mich.  . 

Spranger  Wire  Wheel  Company Detroit,  Mich.  ] 

Square  Turn  Tractor  Company Chicago,  111.  ] 

St.  Clair  Brick  Company Detroit,  Mich.  ^ 

St.  John  Arbors  Company Detroit,  Mich.  ! 

Stafford  Printing  Company Detroit,  Mich.  ] 

Standard  Computing  Scale  Company Detroit,  Mich.  i 

Standard  Gravel  Company Pontiac,  Mich. 

Standard  Mortgage  &  Investment  Company .  .  .  Detroit,  Mich. 

Standard  Real  Estate  Company Lansing,  Mich. 

Standard  Royalties  Company Okmulgee,  Okla. 

Standard  Sulphur  Corporation Detroit,  Mich. 

Standard  Tool  &  Manufacturing  Company ....  Detroit,  Mich. 

Star  Land  Company Detroit,  Mich. 

States  Motor  Car  Manufacturing  Company Kalamazoo,  Mich. 

Stearns  (Frederick)  &  Company Detroit,  Mich 

Steel  Age  Manufacturing  Company Battle  Creek,  Mich. 

Stoll  Printing  House Detroit,  Mich. 


MICIIIOAX   SECUKITIES  COMMISSION 

Stone  Products  Company Muskof^on,  Mich. 

Strand  Theatre,  Incorporated Detroit,  Mich. 

Strasbur^-Miller  Company Detroit,  Mich. 

Sturgis  Steel  Go-Cart  Company Stiirgis,  Midi. 

Sullivan  Packing  Company Detroit,  Mich. 

Superior  Ore  Milling  Corporation Hancock,  Mich. 

Superior  Steel  Castings  Company Benton  Harl)or,  Mich. 

Superior  Wholesale  Grocery  Company.. Detroit,  Mich. 

Svensgaard  (Harry)  Sales  Corporation Detroit,  Mich. 

Swan  Manufacturing  Company Detroit,  Mich. 

Sweeney-Huston  Company Detroit,  Mich, 

Taite  Manufacturing  Company Niles,  Mich. 

Taneha  Oil  Lot  Development  Company St.  Louis,  Mo. 

Tarabusi  Realty  Company Detroit,  Mich. 

Tavern  Hotel  Company Detroit,  Mich. 

Tecumseh  Co-Operative  Association Tecumseh,  Mich. 

Theatre  DeLuxe  Company Detroit,  Mich. 

Tigchon  Land  Company Detroit,  Mich. 

Timken-Detroit  Axle  Company Detroit,  Mich. 

Tisch  Auto  Supply  Company Grand  Rapids,  Mich. 

To  war  Cotton  Mills,  Inc Detroit,  Mich. 

To  wars  Wayne  County  Creamery  Companj^ .  .  .  Detroit,  Mich. 

Tower  Motor  Truck  Company'- Greenville,  Mich. 

Triangle  Motor  Truck  Company  of  Michigan.  .St.  Johns,  Mich. 

Trippensee  Manufacturing  Compan}^ Detroit,  Mich. 

Tri-State  Co-Operative  Association Montgomery,  Mich. 

Truck  (W.  S.)  Compan}^ Birmingham,  Mich. 

Trenton  Grain  &  Elevator  Company Monroe,  Mich. 

Trussed  Concrete  Steel  Company Detroit,  Mich. 

Traverse  Citj^  Motor  Car  Company Traverse  City,  Mich. 

Tuller  Hotel  Company Detroit,  Mich. 

U-Eat-A  Lunch  Companj^ Detroit,  Mich. 

Underwriters  Sales  Company Grand  Rapids,  Mich. 

Union  Home  Builders Detroit,  Mich. 

Union  Trust  Company,  for  Anderson  Electric 

Car  Co Detroit,  Mich. 

Union   Trust   Company,   for  Joseph   H.   Berry 

Estate Detroit,  ]\Iich. 

United  Agenc}^ Chicago,  111. 

United  Cash  Grocerj^  Corporation Grand  Rapids,  ]\Iich. 

United  Electrical  Manufacturing  Company.  .  .  .Adrian,  Mich. 

United  Fuel  &  Supply  Company Detroit,  Mich. 

United  Oil  Co.  of  Kentucky Detroit,  Mich. 

U.  S.  Auto  Supply  Store  Company Detroit,  Mich. 

U.  S.  Mortgage  Bond  Company Detroit,  Mich. 

U.  S.  Pressed  Steel  Company Ypsilanti,  Mich. 

United  Reed  &  Fiber  Company Ionia,  Mich. 

United  Vending  Company Grand  Jiapids,  Mich. 

Universal  Auto  Top  Company Grand  Rapids,  Mich. 

Universal  Car  Equipment  Company Detroit,  Mich. 

Universal  Oil  &  Gas  Company Pittsl>urgh,  Pa. 

Universal  Stores  Corporation Chicago,  111. 


rA                                                            FIRST  REPORT  ,  \ 

Universal      Valveless      Four       Cycle       Motor 

Company Grand  Rapids,  Mich.  j 

University  Club  Building  Company St.  Louis,  Mo. 

Utility  Compressor  Company .  .Detroit,  Mich.  j 

Van  Alstyn  (A.  T.)  Company Grand  Rapids,  Mich.  ^ 

Van  Blerck  Motor  Company Monroe,  Mich.  ] 

Veit  Manufacturing  Company .Holland,  Mich.  | 

Verde  Hub  Copper  Company Decatur,  HI.,  and  Jerome,  Arizona.       , 

Vernor,  (James)  Company Detroit,  Mich.  j 

Victor  Wire  Wheel  Company Kalamazoo,  Mich. 

Vinton  Company Detroit,  Mich.  ] 

Virginia  Ochre  Corporation Grand  Rapids,  Mich.  ] 

Vulcan  Drop  Forge  Company Sandusky,  Ohio. 

Vyking  Refrigerator  Company Niles,  Mich.  ' 

Walker  Brothers  Catering  Company Detroit,  Mich. 

Walker  Universal  Joint  Company Detroit,  Mich. 

Washington  Iron  Company Marquette,  Mich.  : 

Watervliet  Paper  Company Watervliet,  Mich. 

Wa-Ba-Va-Nes-Ta  Medicine  &  Drug  Company. Bay  City,  Mich.  : 
Waukesha       Glen       Rock       Mineral      Springs 

Company Waukesha,  Wis. 

Wayne  County  Loan  &  Realty  Company Detroit,  Mich.  j 

Weed,  Gordon  &  Company Detroit,  Mich.  j 

Weis  Manufacturing  Company Monroe,  Mich.  ] 

Welch  Furniture  Company Grand  Haven,  Mich.  j 

Wellesley  Apartment  Company Detroit,  Mich.  j 

West  Calhoun  Co-Operative  Company East  Leroy,  Mich. 

West  Chapin  Mines  Company Iron  Mountain,  Mich.  : 

Western  Building  Company Detroit,  Mich. 

White  Pigeon  Coated  Paper  Company Kalamazoo,  Mich.  ; 

White  Pine  Extension  Copper  Company Detroit,  Mich. 

White  Star  Refining  Company Detroit,  Mich. 

Whitewater  Ranch  Fruit  Company Detroit,  Mich.  ' 

Wilcke-Armstrong  Company Detroit,  Mich.  i 

Williams  Iron  Company Detroit,  Mich.  ' 

Williams  (W.  E.)  Company Traverse  City,  Mich.  ; 

Wilhng  (H.  L.)  Company Detroit,  Mich.  ] 

Wilson  (J.  C.)  Company Detroit,  Mich.  ' 

Windsor  Upholstering  Company Grand  Rapids,  Mich. 

Wolverine  Brass  Works Grand  Rapids,  Mich.  j 

Wolverine  Car  &  Tractor  Company Detroit,  Mich.  J 

Wolverine  Coal  Company .  .Saginaw,  Mich.  'i 

Wolverine  Creamery  Products  Company Detroit,  Mich.  ; 

Wolverine  Motor  Car  Company Kalamazoo,  Mich. 

Wolverine  Paper  Company Otsego,  Mich.  | 

Wolverine  Textile  Mills Ann  Arbor,  Mich.  j 

Wood  (G.  H.)  Paper  Company Monroe,  Mich.  ; 

Wright  Carson  Company Gladwin,  Mich. 

Zanger  (G.  W.)  Realty  Company Detroit,  Mich.  j 

Zimmers  Dairy  Service  Station Detroit,  Mich.  \ 

Note: — Status  of  Companies  appearing  as  APPROVED  changes  from  : 
time  to  time  through  revocation  of  licenses  and  therefore  the  latest  \ 
bulletins  and  supplements  issued  by  the  Department  should  be  followed.       | 


MICHIGAN  SEC^UlilTIES  COMMISSION 


BOND  ISSUES  APPROVED 

BY    THE 

MICHIGAN  SECURITIES  COMMISSION. 

Jacob   Adler   &    Benjamin    Rush,    Collingwood 

Apts Detroit,  Mich. 

Jacob  Adler  &  Benjamin  Rush,  Alger  Apts.  .  .  .Detroit,  Mich. 
Jacob  Adler  &  Benjamin  Rush,  Brainard  Apts.  . .  Detroit,  Mich. 
Jacob  Adler  &  Benjamin  Rush,  Pioneer  Apts..  .Detroit,  Mich. 

Wm.  J.  Andrews,  Burton  Apts Detroit,  Mich. 

Ralph  Appleman,  St.  Antoine  Apts Detroit,  Mich. 

August  Barak,  et  al.,  Delaware  Court  Apts.  .  .  .Detroit,  Mich. 
August  Barak,  et  al.,  Seward  &  Wilson  Aves  ....  Detroit,  Mich. 

Julius  Berman,  Farnum  Bldg Detroit,  Mich. 

Julius  Berman,  et  al.,  Forest  Ave.  &  St.  Antoine.  Detroit,  Mich. 
Ernest  Bergman,  et  al.,  Rex-Arms  Apts.  .....  .Detroit,  Mich. 

Bigelow  Company,  Hancock  &  John  R.  Sts .  .  .  .Detroit,  Mich. 

Henry  L.  Bowles,  Store  Building Detroit,  Mich. 

Robert  F.  Church,  Racine  Terminal  Bldg Racine,  Wis. 

Sherman  T.  Cooper,  Coop^r-Monatah  Bldg.  .  .  .Chicago,  111. 

Sherman  T.  Cooper,  Hotel  Richmond Chicago,  111. 

W.  Harry  Courtaine,  Courtaine  Apts Detroit,  Mich. 

Aloysia  &  Maurice  Curren,  Minerva  Apts Chicago,  II'. 

Harry   Davidson,  et.  al.,    Holcomb    &    Lorman 

Aves Detroit,  Mich. 

Henry  Frank,  et.  al.,  Greenfield  Apt.  Bldg Detroit,  Mich. 

Morris  Friedman  &  Jos.  Roth Grand  Rai)ids,  Mich 

George  P.  Goeble,  Rosenwald  &  Weil  Bldg Chicago,  111. 

Chas.  &  Max  Hamburger,  Grand  Oak  Bldg Detroit,  INIich. 

Chas.  &  Max  Hamburger,  Richton  Bldg Detroit,  Mich. 

Samuel  &  Esther  Harris,  Penn.  &  Warren  Aves. .Detroit,  Mich. 

Earl  I.  Hecnan,  Apartment  Bldg Detroit,  Mich. 

Edward  J.  Hickev,  et.  al., Detroit,  Mich. 

Harry  Lewis,  et.  al.,  Lewis  Apt.  Bldg Detroit,.  Mich. 

John  &  Charlotte  Mclnnis,  LaFayette  Apts (^hicago,  PI. 

Mrs.  Chas.   McMahon,  et  al.,  LaSalle  Garden 

Apt Detroit,  Mich. 

Wm.  A.  Montgomery,  et  al.,  Montgomery  Apts.  Detroit,  Mich. 

Jacob  Newman,  Birmingham  Apts Detroit,  Mich. 

New  York  City  District  Realty  Corporation.  .  .Now  York,  X.  ^  . 
New  Washington  Improvomont  Company,  New 

Washington  Hotel Seattle,  Wash. 

Henry  F.  &  Anna  F.  Peabody,  Pcabody  Apts.  .Detroit,  Mich. 

Samiicl  Plotkin,  et  al.,  Fort  William  Apts Detroit,  Midi. 

Samuel  Rabinowitch  &  Louis  Stoll,  Parsons  St.  Detroit,  Mich. 
Elwyn  W.  Sevmour,  Milwaukee  Terminal  Bldg. Milwaukee,  Wis. 

George  H.  Shank,  Shank  Warehouses Chicago,  111. 

George  H.  Shank,  Shank  Annex  Warehouse.       Chicago,  111. 


56  FIRST  REPORT  7  : 

Harry  W.  Sisson,  Sissoii  Apt.  Hotel  Bldg Chicago,  111. 

Chas.  C.  Smith,  "Villa  Lante"  Apts Detroit,  Mich. 

Louis  Stoll,  LaSalle  Bldg Detroit,  Mich. 

Harold  &  Peter  Trunsky,  Warwick  Apts Detroit,  Mich. 

229  Lake  Shore  Drive,  Inc.,  The  Shoreland ....  Chicago,  111. 

Estate  of  Francis  Palms,  Book  Bldg Detroit,  Mich.  ^ 

Nathaniel  Victor  &  Harry  Lipshitz,  Peterboro 

Apts Detroit,  Mich. 

Barney  Wetsman  &  Mose  Lipsitz,  LesHe  Bldg. .  Detroit,  Mich. 

Joseph  Wetsman,  Frederick  Bldg Detroit,  Mich.  i 

John  S.  Wilson,  et  al.,  Wilson  Building Lansing,  Mich. 

INVESTMENT  COMPANIES  DISAPPROVED 

BY    THE 

MICHIGAN  SECURITIES  COMMISSION. 

Air-0-Lite  Company Cincinnati,  Ohio. 

American  Finance  &  Bond  Company Birmingham,  Alabama. 

Artone  Film  Company Detroit,  Mich. 

Austro-Hungarian  Land  Company Detroit,  Mich. 

Ben  MacDhui  Health  Resort  Company Whitehall,  Mich.  ' 

British  Northwestern  Fire  Insurance  Company .  Detroit,  Mich.  j 

Chaussee  Manufacturing  Company Detroit,  Mich.  j 

Commonwealth  Finance  Corporation Pierre,  South  Dakota. 

Commonwealth  Mortgage  Company .'.Minneapolis,  Minn. 

Developments    Corporation    of    Detroit,    Real  ■ 

Estate  Exchange  Bldg Detroit,  Mich. 

Detroit  Pneumatic  Tire  Company Detroit,  Mich. 

Dillon  Oil  Company Butte,  Montana.  [ 

•Dodge  Motor  Car  Company Detroit,  Mich.  \ 

Espranza  Mining  Company ■:  .  Cedar,  Mich. 

Excelsior  Smokeless  Stove  Company. Detroit,  Mich. 

Gold  Cup  Mining  Company Central  City,  Col. 

Harmon  Coal  Company Chicago,  111.  < 

Lake  Superior  Land  Company Marquette,  Mich. 

Luxmore  Company Dover,  Del.  ; 

Marshall  Castings  Company  (Bonds) Marshall,  Mich. 

Mutual   Investment   &   Improvement   Associa- 
tion   Marshall,  Mich. 

National     Aerial     Navigation     &     Equipment 

Company Detroit,  Mich.  i 

Orleans  Flake  Graphite  Company New  Orleans,  La.  j 

Reo  Motor  Car  Company  of  Canada.. .  .■ St.  Catherines,  Ont. 

Sentanel  Remedies  Company Cincinnati,  Ohio. 

Shoshoni  Oil  Company Royal  Oak,  Mich. 

Tropical  Development  Company Detroit,  Mich. 

Waco-Schaffer  Motor  Company Detroit,  Mich.  j 

Waterbury,  James  L.  Company Minneapolis,  Minn.  ! 

Weed  Differential-Rotary  Motor  Company.  .  .  .Detroit,  Mich.  • 

Weis  Fibre  Container  Corporation Monroe,  Mich.  j 


MICHIGAN  SECURITIES  COMMISSION  57 

LICENSES  REVOKED. 

American  Rapid  Cyanidiiig  Company Detroit,  Mich. 

Charlevoix  Rock  Products  Company Charlevoix,  Mich. 

Cort  Film  Corporation New  York,  N.  Y. 

Detroit-Colonial  Theatre  Company Detroit,  Mich. 

Detroit-Wyandotte  Motor  Truck  Company Wyandotte,,  Mich. 

Gem  Motor  Car  Corporation Grand  Rapids,  Mich. 

Lawton  Basket  Company Lawton,  Mich. 

Menominee  Electric  Manufacturing  Company .  .  Menominee,  Mich. 

National  Building  Construction  Company Detroit,  Mich. 

Niles  Invisible  Door  Check  Company Niles,  Mich. 

Price  Merchants  Syndicate Minneapolis,  Minn. 

Wayne  Tractor  Company Detroit,  Mich. 

APPLICATIONS  WITHDRAWN  SINCE 
ORGANIZATION  OF  COMMISSION. 

A.  L.  A.  Tire  Company Detroit,  Mich. 

Alabama  Southern  Oil  Company Chicago,  111. 

Alfo  Products  Company Detroit,  Mich. 

Arizona  Virginia  Copper  Company Prescott,  Arizona. 

Automobile  Boat  Mfg.  Company Chicago,  111. 

Bay  State  Oil  &  Gas  Company Kansas  City,  Mo. 

Beneficial  Loan  Society Newark,  N.  J. 

Bluff  Creek  Oil  &  Gas  Company Tulsa,  Oklahoma. 

Buckhorn  &  Boulder  Mining  Company Mesa,  Col. 

Butte-Detroit  Copper  &  Zinc  Mining  Company  .Boston,  Mass. 

Central  Wyoming  Oil  Company Wilmington,  Del. 

Cleopatra  Copper  &  Gold  Mines  Company ....  Phoenix,  Arizona. 

C.  L.  0.  Land  Company Detroit,  Mich. 

Cigar  Machine  Corporation  of  America Baltimore,  Md. 

Club  Farms  &  Town  Development  Syndicate .  .  .  Chicago,  111. 

Cowles-McDowell  Pneumobile  Company Chicago,  111. 

Detroit  Pressed  Steel  Company Detroit,  Mich. 

Detroit  Serving  Machine  Company Detroit,  Mich. 

Detroit  Zoological  Society Detroit,  Mich. 

Dowagiac  Drill  Company Dowagiac,  Mich. 

Eidson  Air  Products  Company Baltimore,  Md. 

Electra  Oil  &  Pipe  Line  Company Dallas,  Texas. 

Ensign  Yellow  Pine  Company Wetumpka,  Ala. 

Ferndale  Cemetery  Association Wj^andotte,  Mich. 

Fremont  County  Power  Company Kansas  City,  Mo. 

Gemmer-Detroit  Starter  Company Detroit,  JVIich. 

Gibson  Consolidated  Copper  Company Wilmington,  Del. 

Grand  Rapids  Wholesale  Grocery  Company.  ...Grand  Rapids,  Mich. 

Guaranty  Bond  &  Mortgage  Corporation Detroit,  Mich. 

Hotel  Hamilton  Corporation New  York,  N.  Y. 

Inter-County  Co-Operative  Packing  Company.  .  New  Richmonti,  \\  is. 

Ivy  Pictures  Corporation Detroit,  Mich. 

William  E.  King  Company Detroit,  Mich. 

Mesa-Colorado  Oil  Company Boston,  Mass. 

Morse-Knap  Tire  &  Rubber  Company Detroit,. Mich. 


58                                                          FIRST  REPORT  j 

1 

National  Oxygen  Company Chicago,  111.  | 

National  Process  Fuel  Company Detroit,  Mich. 

National  Pure  Water  Company Detroit,  Mich.  I 

Palm  Development  Company Coachella,  Cal.  j 

Pan-American  Motors  Corporation Chicago,  111.  j 

Pas  Consolidated  Mines  Company Winnipeg,  Canada.  \ 

Perpetual     Motion     Power     Heat     &     Light  ' 

Company Detroit,  Mich.  \ 

Producers  &  Refiners  Corporation Denver,  Col.  ' 

Pull-More  Motor  Truck  Company Detroit,  Mich.  [ 

Redpath  Chautauquas Chicago,  111.  i 

Riley-Schubert-Grossman  Company Chicago,  111.  I 

Russell  Pharmaceutical  &  Instrument  Company. Pueblo,  Col.  \ 

Scientific  Farming  Machinery  Company MinneapoHs,  Minn.  ■ 

Self-Adjusting  Bearing  Company Detroit,  Mich.  ■ 

Sherman  Carbide  Company Pittsburg,  Pa.  '. 

Thermophore  Manufacturing  Company Kalamazoo,  Mich. 

Charles  Truax  Company Chicago,  111.  j 

United  States  Copper  Company Hanover,  New  Mexico.  j 

United  States  Mortgage  Bond  Company Detroit,  Mich.  i 

Universal  Machine  Company Detroit,  Mich.  j 

Homer  F.  Wilcox  Syndicate Tulsa,  Oklahoma.  ; 

Woodlawn  Trust  &  Savings  Bank Chicago,  111. 

C.  R.  Wilson  Body  Company Bay  City,  Mich. 

LICENSED  DEALERS  ] 

UNDER  : 

ACT  46,  PUBLIC  ACTS  OF  1915.  | 

Dealers,  Agents  of  Dealers  and  Agents  of  Approved  Companies  are 

issued  Licenses  when  permission  is  granted  them  to  sell  securities.  ■ 

Andrews  Company Detroit  &  Chicago.  i 

Andrews-Hanrahan  Company Detroit,  Mich.  j 

Andrews,  Heenan  &  Company Detroit,  Mich.  : 

Anger,  F.  C Detroit,  Mich.  ' 

Anstey,  (S.  J.)  Company Detroit,  Mich.  j 

Appleby,  Benjamin  G Saginaw,  Mich. 

Armstrong,  A.  Grant Detroit,  Mich. 

Austin,  J.  F.  &  Company Detroit,  Mich. 

Bailey,  W.  N  . Saginaw,  Mich.  ■ 

Baker,  H.  B Detroit,  Mich.  : 

Baker,  Ayling  &  Young Boston,  Mass.  I 

Barnes,  J.  William Detroit,  Mich.  ! 

Barry- Wilson  Company Milwaukee,  Wis.  | 

Bennett,  Smith  &  Company Detroit,  Mich.  | 

Berger,  Charles  Pratt Jackson,  Mich.  ' 

Besner,  Cramer  &  Muehl Detroit,  Mich.  j 

Binkhorst,  D.  &  Company Kalamazoo,  Mich.  I 

Bolger,  Mosser  &  Willaman Chicago,  111.  i 

Bonbright  &  Company Chicago  &  Detroit.  , 


MICHIGAN  SECURITIES  COMMISSION  59 

Bradford,  Walter  T Detroit,  Mich. 

Breed,  Elliott  &  Harrison Chicago,  111. 

Breitung  &  Company New  York  &  Marquette. 

Brewer,  E.  C.  &  Company Chicago,  111. 

Brewer,  F.  A.  &  Company Chicago,  111. 

Brook,  Charles  L Ann  Arbor,  Mich. 

Buell,  Elbert  L Detroit,  Mich. 

Buick,  Thomas  D Detroit,  Mich. 

Bumpiis  &  Company Detroit,  Mich. 

Burdick-Thomas  Company Detroit,  Mich. 

Burger  (John)  Company Detroit,  Mich. 

Burr,  George  H.  &  Company Chicago  &  New  York. 

Carlyle  &  Povah Detroit,  Mich. 

Chalfont,  A.  R.  &  Company Detroit,  Mich. 

Child  &  Company New  York,  N.  Y. 

Clark,  Edward  H.  &  Company Detroit,  Mich. 

Clark,  E.  W.  &  Company Philadelphia,  Pa. 

Coleman,  R.  E.  &  Company Grand  Rapids,  Mich. 

Colton,  Frank  S.  &  Wm.  C.  Jacobs Detroit,  Mich. 

Compton,  William  R.  Investment  Company ...  St.  Louis,  Mo. 

Conshafter,  John  N Milwaukee,  Wis. 

Continental    &    Commercial   Trust   &   Savings 

Bank Chicago,  111. 

Couls,  S.  W.  &  Company Detroit,  Mich. 

Counselman  &  Company Chicago,  111. 

Crawford,  Stanton  C Detroit,  Mich. 

Currier,  I.  Lewis Detroit,  Mich. 

Cutler,  Harold  A Grand  Rapids,  Mich. 

Dahms,  Edward  J Detroit,  Mich. 

Davis-Burger  Company Chicago,  111. 

Davison  Company Boston,  Mass. 

Davidson,  R.  S.  &  Company Detroit,  Mich. 

Davies,  Karl  R.  &  Company Detroit,  Mich. 

DenBleyker  &  Olmsted Kalamazoo,  Mich. 

Detroit  Trust  Company Detroit,  Mich. 

Deuel  &  Sawall Grand  Rapids,  Mich. 

Devitt,  Tremble  &  Company Chicago  &  Detroit. 

Dodd,  Martin  &  Company Detroit,  Mich. 

Donovan,  William  &  Company Lansing,  Mich. 

Draper  Brothers Chicago  &  Toledo, 

Elston,  Clifford  &  Company Chicago,  111. 

Equitable  Finance  Corporation Detroit,  Mich. 

Federal  Bond  &  Mortgage  Company Detroit,  Mich. 

Field,  Richards  &  Company Detroit  &  Cincinnati,  O. 

First  &  Old  Detroit  National  Bank Detroit,  Mich. 

Fish,  Albert  H Saginaw,  Mich. 

Fisher,  Johnson Detroit,  Mich. 

Forshee  &  Kuehnle Ann  Arbor,  Micii. 

Fries,  Edgar  D Detroit,  Mich. 

Frost,  John  C Detroit,  Mich. 


60  FIRST  REPORT 


Fuller,  E.  M.  &  Company New  York,  N.  Y. 

Gardner  &  Dresser Detroit,  Mich.  : 

Garlinghouse,  B.  A Detroit,  Mich. 

Gaylord  Company Cleveland,  Ohio.  i 

Gerhauser,  W.  H.  &  Company Detroit,  Mich.  : 

Glendon,  John  P Detroit,  Mich. 

Gorton,  Lewis  G Detroit,  Mich.  j 

Gowman,  C.  H Detroit,  Mich.  ■ 

Grand  Rapids  Trust  Company Grand  Rapids,  Mich. 

Hallgarten  &  Company New  York,  N.  Y.  j 

Halsey,  Stuart  &  Company Chicago,  111.  i 

Hamhn,  W.  A.  &  Company Detroit,  Mich. 

Harbridge  &  Company Detroit,  Mich.  • 

Harriman  &  Company New  York,  N.  Y.  ' 

Harris,  Mark Buffalo,  N.  Y.  I 

Harris  &  Company Chicago,  111. 

Harris  Fiscal  Company St.  Paul  &  Detroit.  ] 

Harris  Trust  &  Savings  Bank Chicago,  111.  j 

Haynes  &  Huffman Detroit,  Mich.  j 

Hemphill,  White  &  Chamberlain New  York,  N.  Y.  '{ 

Henry,  Frank  J Kalamazoo,  Mich.  i 

Hill,  R.  Richardson  &  Company Saginaw  &  New  York. 

Hilliker,  Perkins  &  Everett Grand  Rapids,  Mich.  : 

Hirschman,  Irving  L Detroit,  Mich.  1 

Hobbs,  Henry Kalamazoo,  Mich.  j 

Hodenpyl,  Hardy  &  Company Chicago,  111.  J 

Hoehler,  F.  C.  &  Company Toledo,  Ohio. 

Holtz,  H.  T.  &  Company Chicago,  111.  j 

Hood,  A.  J.  &  Company Detroit,  Mich. 

Hord,  Fitzsimmons  &  Companj^ Chicago,  111. 

Hornblower  &  Weeks Detroit,  Mich.  ^ 

Howe,  Snow,  Corrigan  &  Bertles Grand  Rapids,  Mich.  i 

Hughes,  W.  C.  &  Company,  Ltd Detroit,  Mich.  i 

Hulburd,  Warren  &  Chandler Chicago,  111.  ; 

Humphrey,  W.  H.  &  Company Detroit,  Mich.  ! 

Hyney,  R.  S.  &  Company Chicago,  111.  j 

Imbrie,  William  Morris  &  Company New  York,  N.  Y.  j 

Isbell,  Plant  &  Company Toronto,  Ont.  | 

James,  William  D Detroit,  Mich.  i 

Jones  &  Baker New  York,  N.  Y.  . 

Kay  &  Company Detroit,  Mich.  '■ 

Kean,  Taylor  &  Company Chicago,  111.  \ 

Keane,  Higbie  &  Company Detroit,  Mich.  j 

Kern  &  Kilets Detroit,  Mich.  I 

King,  Hoagland  &  Company Chicago,  111.  I 

Knapp,  A.  W.  &  Company Detroit,  Mich. 

Kusterer,  A.  E.  &  Company Grand  Rapids,  Mich. 

Lansing  Investment  Company Lansing,  Mich. 


MICHIGAN  SECURITIES  COMMISSION  61 

Leach,  A.  B.  &  Company Chicago  &  New  York. 

Lee,  Higginson  &  Company Chicago,  111, 

Lincoln  Finance  Corporation Detroit  &  New  York. 

Lion,  David  Marks New  York,  N.  Y. 

Lisman,  F.  J.  &  Company New  York,  N.  Y, 

Logan  &  Bryan New  York  &  Chicago. 

MacCrone,  E.  E.  &  Company Detroit,  Mich. 

McCoy  &  C'ompany Chicago,  111. 

McGiverin,  Thomas Detroit,  Mich. 

McLaughlin,  Walter  B Detroit,  Mich. 

McLean,  John  F,  &  Company Detroit,  Mich. 

McNab,  B.  A.  &  Company.  ! Detroit,  Mich. 

McNeal,  E.  &  Company Chicago,  111. 

McNear,  C.  W.  &  Company Chicago,  111. 

Martin,  James  L.  &  Company Chicago,  111. 

Meisenheimer-Holt  Corporation Detroit,  Mich. 

Merchants  Securities  Company Detroit,  Mich. 

Merrill,  Ljmch  &  Company Detroit,  Mich. 

Michigan  Motors  Securities  Company Grand  Rai)ids,  Mich. 

Michigan  Trust  Company Grand  Rapids,  Mich. 

Miller,  Albert  R Detroit,  Mich. 

Minnear,  J.  A.  &  Company Ishpeming,  Mich. 

Mitchell,  C.  C.  &  Company Chicago,  111. 

Moore,  Ernest  H.  &  Company Chicago,  111. 

Mortgage  Securities  Company New  Orleans,  La. 

Moss,  W.  E.  &  Company Detroit,  Mich. 

Murphy,  Charles  Raymond  &  Company Detroit,  Mich. 

Myers  &  Jolliff Detroit,  Mich. 

National  City  Company Detroit  &  New  York. 

Nebe,  Belden,  Woodruff  &  Company Detroit,  Mich. 

Neer,  Wm.  A.  &  Company Detroit,  Mich. 

Newman,  Paul  A.  &  Company New  York,  N.  Y. 

Nicol,  Ford  &  Company Detroit,  Mich. 

Nichols  &  Barry Detroit,  :\Iich. 

Noble,  H.  W.  &  Company Detroit,  Mich. 

Oakes,  James  W.  &  Company Grand  Haven,  :Mich. 

O'Hara,  Ferriss  &  Company Detroit,  Mich. 

Oliver,  Francis  E Detroit,  Mich. 

Otis  &  Company Cleveland,  O. 

Paine,  Webber  &  Company Detroit,  Mich. 

Payne,  Bergeran  &  Company Detroit,  :Mich. 

Peabody  Bond  &  ^Mortgage  Company Chicago,  111. 

Peirce,  M.  M Detroit,  Mich. 

Pelton,  Frank  K Detroit,  Mich. 

Perry  &  Posey Chicago,  111. 

Pitcher  &  Company Saginaw,  Mich. 

Potter,  King  &  Palmer Detroit,  Mich. 

Powell,  Garard  &  Company Chicago,  III. 

Read,  Wm.  A.  &  Companv Now  York,  X.  ^  . 

Reilly,  WiUiam  E.  &  Company Detroit,  Mich. 

Robinson,  M.  M.  &  Company,  Inc Detroit,  Mich. 


62  FIRST  REPORT  I 

1 

'Rogers,  Jonathan-  Spencer Detroit,  Mich.  ' 

RolHns,  E.  H.  &  Sons Chicago,  111.  : 

Root,  John  Mortimer Detroit,  Mich.  j 

Rose,  Wm.  H.  &  Company Detroit,  Mich.  . 

Salomon,  William  &  Company Chicago  &  New  York.  i 

Sawyer,  Noble  &  Company Kalamazoo  &  Elmira,  N.  Y. 

Seagrave,  F.  &  Company New  York,  N.  Y.  ! 

Security  Trust  Company Detroit,  Mich. 

Sessler  Company Detroit,  Mich. 

Seymour,  Dwight  Lewis Detroit,  Mich. 

Shanahan,  F.  H.  &  Company Detroit,  Mich. 

Shapker,  Waller  &  Company Chicago,  111.  i 

Sheffer,  A.  R.  &  Company .  .  Detroit,  Mich.  j 

Shifflett,  John  B Cleveland,  Ohio.  | 

Sinclair,  George  W.  &  Company Detroit,  Mich.  j 

Slattery  &  Company New  York,  N.  Y.  i 

Souders,  W.  G.  &  Company Chicago,  111.  ] 

Spitzer,  Sidney  &  Company Toledo,  Ohio. 

Stacy  &  Braun Toledo,  Ohio. 

Stanton,  K.  M.  Company,  Inc New  York,  N.  Y. 

Stettler,  Paul  H Detroit,  Mich. 

Stockard,  Joel  &  Company Detroit,  Mich. 

Stoneham,  Charles  A.  &  Company Detroit,  Mich. 

Stratton,  Burt  S Lansing,  Mich. 

Straus,  S.  W.  &  Company Chicago  &  Detroit. 

Straus  Brothers  Company Detroit,  Mich. 

Sunley,  Wilham  T ■ Detroit,  Mich. 

Taylor,  Ewart  &  Company Chicago,  111. 

Thomson,  Jack  M Detroit,  Mich. 

Thomson  &  McKinnon ' Chicago,  111. 

Thurman,  Geistert  &  Company Grand  Rapids,  Mich. 

Tillotson  &  Wolcott  Company Cleveland,  Ohio. 

Union  Tmst  Company i Detroit,  Mich. 

United  States  Investment  Company Detroit,  Mich. 

United  States  Mortgage  Bond  Company,  Ltd  .  .  .  Detroit,  Mich. 

Ussing,  Poole  &  Simmons,  Inc Chicago,  111. 

VanHeest  &  Company Grand  Rapids,  Mich. 

VanKeuren,  James  Irvin Lansing,  Mich. 

VanKeuren,  Rogers,  Templeton  Company,  Inc.  .Detroit,  Mich. 

Wagner,  E.  W.  &  Company Chicago,  111. 

Wallace,  A.  W.  &  Company Detroit,  Mich. 

Walsh,  John  H Lansing,  Mich. 

Wathng,  Lerchen  &  Company Detroit,  Mich. 

Webb,  Lee  &  Company Detroit,  Mich. 

Wells,  Knapp  &  Company Detroit,  Mich. 

Wendell,  Mulkey  &  Company Detroit,  Mich. 

West,  Amos  P Detroit,  Mich. 

West,  George  M.  &  Company Detroit,  Mich. 

Wheeler,  F.  H.  &  Company Detroit,  Mich. 


MICHIGAN  SECURITIES  COMMISSION  63 

White,  George  W Detroit,  Mich. 

White,  Weld  &  Company New  York,  N.  Y. 

Whittlesey,  M.  B.  &  Company Detroit,  Mich. 

Wills,  Hamilton  B Detroit  &  Toronto,  Ont. 

Wilsey,  R.  E.  &  Company Chicago,  111. 

Winkelman,  L.  L.  &  Company New  York,  N.  Y. 

DISAPPROVED. 
Guarantee  Bond  &  Securities  Company Detroit,  Mich. 


64 


FIRST  REPORT 

STOCK  PLACED  IN  ESCROW  WITH  STATE  TREASURER. 


Name  of  company. 

Number 
shares. 

Amount. 

Purpose  and  consideration. 

150 

5,000 

50 

20,000 

5.000 

■2,. 500 

10,000 

20,100 

20,000 

4,000 

1,794 

25,000 

1,000 

500 

1,400 

2,000 

400 

5,100 

1,000 

2,200 

100,001 

250 

50,000 

200,000 

500,000 

1,000 

2,550 

17,500 

5,000 

3,500 

2,000,000 

2,500 

1,285 

740 

26,500 

11,504 

37,500 

1,.500 

.300,005 

250 

1,500 

1,000 

4,530 

1.52,272 

7,500 

2,501 

2,500 

500 

600,000 

1,.500 

775 

10,000 

3.35,000 

15,000 

1,321 

3,500 

5,905 

.35,000 

10,000 

1,500 

100 

589 

500 
1,500 

20,000 
2,007 
1,137 
1,010 
3,800 
1,3.50 
1,012 
4,, 500 
3,000 

70,000 

500 

300 

2.1351 

315,000 

50,000 

5,000 

200,000 

.50,000 

25,000 

100,000 

201,000 

200,000 

40,000 

17,940 

250,000 

10,000 

50,000 

14,000 

20,000 

4,000 

51,000 

10,000 

22,000 

1,000,010 

25,000 

50,000 

200,000 

500,000 

10,000 

255,000 

175,000 

50,000 

35,000 

10,000,000 

25,000 

12,850 

74,000 

265,000 

115,040 

375,000 

15,000 

.300,005 

25,000 

15,000 

10,000 

45,300 

75! 000 
25,010 
25,000 
,50,000 
600,000 

15,000 

7,750 

100,000 

3,. 350, 000 

150,000 

13,210 

35,000 

.59,050 

.3.50,000 

100,000 

15,000 

10,000 

5,890 

5,000 

15,000 

200,000 

200, 700 

11,370 

10.100 

38,000 

13,500 

101,200 

45,000 

.30,000 

70,000 

.50,000 

(Life  Ins.  Pol.) 

5,000 

.30,000 

21,355 

Plant  and  equipment. 
Property. 

Aetna  Motor  Truck  Co.,  Detroit,  Mich 

Air-0-Flex  Automobile  Corporation,  Detroit,  Mich. . . 
Alfalfa  Cereal  Co.,  Detroit  Mich 

License  cont. 

All  Season  Body  Co.,  Marshall,  Mich 

American  Commerce  Association,  Chicago,  III 

American  Motor  Truck  Co.  Detroit  Mich 

Manuscripts. 

Blue  prints,  designs,  etc. 

Patent. 

American  Rapid  Cyaniding'Co.,  Detroit,  Mich 

American  Specialty  Co.,  Grand  Rapids,  Mich 

Anglin  (Margaret)  Picture  Corporation,  New  York  City 

Patents. 
Contract. 

Automotive  Manufacturing  Co.,  Detroit,  Mich 

Bay  City  Sand  &  Gravel  Co.,  Bay  City,  Mich 

Black's  Money  Saving  Mail  Order  Co.,  Pigeon,  Mich. .  . 
Blashfield  Furnace  Co.  Jackson  Mich 

Patents. 

Steamer  "H.  Houghton." 

Stock  of  goods. 

Patents 

Bowling  Dental  Mfg.  Co.,  Detroit,  Mich 

Patents 

Buller-Millikin  Co.,  Detroit  Mich 

Patents 

Butler  Iron  Co.  Chicago  111 

Byron  Typewriter  Cabinet  Co.,  Detroit,  Mich 

Calumet  Petroleum  Co.  Calumet  Mich 

Patents  and  property. 

Cascade  Lead-Silver  Mines  Co., Ltd., Toronto,  Ont. .. . 
Champerado  Copper  Mining  Co.,  Phoenix,  Arizona. . . 
Clay  Products  Co.  Detroit  Mich 

Mining  claims. 

Property. 

Property. 

Patents  and  property. 

Contracts  and  other  property. 

Option  to  purchase  property. 

Consumers  Co-Operative  Coal  Co.,  Detroit,  Mich 

Property. 

Detroit  Heater  Corporation  Detroit  Mich 

Detroit  Loose  Leaf  Specialty'Co.,  Detroit,  Mich 

Detroit  Sanitary  Closet  Co.  Detroit  Mich 

Patent. 
Patents 

Detroit  Weatherproof  Body  Co.,  Detroit,  Mich 

Differential  Clock  Co.,  Chicago,  111 

Patent  rights. 

Doble-Detroit  Steam  Motors  Co.,  Detroit,  Mich 

Drabold-Mott  Mfg.  Co.  Detroit  Mich 

Property. 
Patents 

Dripping  Springs  Copper  Co.,  Los  Angeles,  Cal 

Electrograph  Co.,  Detroit  Mich. .  . 

Mining  claims. 
Patent. 

Emerson  Motor  Truck  Co.  Detroit  Mich 

Organization  and  experimental  work 

Assets  of  cigar  business. 

Patent. 

Emery  Cigar  Co.,  Battle  Creek,  Mich 

Esco  Mfg.  Co.,  Detroit,  Mich. . 

Federal  Syndicate  Copper  Co.,  Calumet,  Mich 

Lease. 

Four  Drive  Tractor  Co.  Big  Rapids  Mich 

Patents. 

Gas  Oil  Stove  Co.  Detroit  Mich 

Patents 

Golden  Age  Junior  Mining  Co.,  Lansing,  Mich 

Grand  Rapids  Magnetic  Mineral  Water  Co.,  Grand 
Rapids,  Mich 

Lease. 

Guardian  Frigerator  Co.   Detroit  Mich 

Patents. 

Hackett  Motor  Car  Co.,  Grand  Rapids,  Mich 

Harroun  Motors  Corporation,  Wihnington,  Del 

A.  T.  Harrow  Tractor  Co.  Detroit  Mich 

Property. 
Patents. 
Patents  and  property. 

Headlight  Support  Co.  Detroit  Mich 

Patents 

Holzworth  Co.,  Milwaukee  &  Buffalo 

Leases  etc. 

Houseman-Spitzley  Corporation,  Detroit,  Mich 

Hydraulic  Oil  Systems  Corporation,  Detroit,  Mich. . . . 

Inland  Metal  Products  Co.,  Detroit,  Mich 

Jones-Regan  Co.,  Detroit,  Mich 

Property. 

Assets  and  patents. 

Secret  process  and  formulae. 

Formulaes. 

Labadie  Russell  Motion  Picture  Productions,  Inc., 
Detroit,  Mich 

Contracts  and  property. 

Lenhart  Bros.  Lunch,  Inc.,  Detroit,  Mich 

Patents. 

Francis  0.  Lindquist.Cc,  Grand  Rapids,  Mich 

Litho  Marble  Co.  Detroit  Mich 

Property. 

Contracts  formulae  etc 

Little  Wonder  Stove  Co.,  Detroit,  Mich 

Lock-Tite  Mfg.  Co.,  Battle  Creek,  Mich 

Lo-Vis  Company  Kalamazoo  Mich 

Patents. 
Patents. 

Luck  Tire  &  Mfg.  Co.,  Jonesville,  Mich 

Michigan  No-Break  Egg  Carrier  Co.,  Detroit,  Mich. . . . 
Mineral  Oil  Paint  Co.  Detroit  Mich 

Patents. 

Promotion. 

Propertv. 

Moose  Bay  Fur  &  Trading  Co.,  Tacoma,  Wash 

Morse-Beauregard  Mfg.  Co.  Detroit  Mich 

Promotion. 
Promotion. 

National  Cooperage  Co.,  Detroit,  Mich 

National  Educational  Bureau,  Ypsilanti,  Mich 

Promotion. 
Promotion, 

MICHIGAN  SECURITIES  COMMISSION 
STOCK  PLACED  IN  ESCROW  WITH  STATE  TEEASVRER.-Conduded. 


05 


Name  of  company. 

Number 
shares. 

Amount. 

Purpose  and  considcratiDn. 

Northwestern  Ranch  &  Cattle  Co.  Detroit.  Mich .... 
Oregon  Strong  Ledge  Mining  Co.,  Charlotte,  Mich .... 

143 
340,607 
1.132 
7,236 
5,100 
4,000 
2,000 

12,, 500 
1,500 
3,000 
1,2.50 
7,000 
190 
5,000 
2,000 

37,  ,500 
2,510 
2,2.50 

30,000 
2,450 
3,000 
6,000 
9,300 

40,000 
1,000 
3,282 
450 
3,793 

10,040 

800 

2,500 

7,400 

14,300 

340,607 
11,. 320 

723,600 
51,000 
40,000 
20,000 

125,000 
15,000 
30,000 

125,000 
70,000 
19,000 
.50,000 
20,000 
No  par  value 

251,000 
22,500 

300,000 
24,500 
,30,000 
60,000 
93,000 
40,000 
10,000 
32,820 
45,000 
37,9.30 

251.000 
20,000 
25,000 
74,000 

Lands. 
Real  estate. 
Patent. 

Parker  Rust-Proof  Co.  of  America,  Detroit,  Mich.  . . . 
Phillips  Metallic  Hose  Co.  Jackson  Mich 

Patents. 
Patents. 

Powers  National  Oil  Co    Detroit  Mich 

Real  estate  and  equipment. 

Rouse  Folding  Crate  Co.',  Inc.,  Detroit,  Mich 

Saginaw  Valley  Ginseng  Co.  Saginaw  Mich 

Patent. 
Property. 

Sanitary  Steam  Flat  Iron  Co    Detroit  Mich 

Contracts. 

Patent. 

Security  Mortgage  Co.  of  America,  St.  Paul,  Minn. . . 
Signal  Motor  Truck  Co    Detroit  Mich 

Promotion. 

Assets  and  property. 

Silica  Brick  Co.,  Detroit,  Mich 

Patent. 

Spranger  Rim  &  Wheel  Co.  Detroit  Mich 

St  Clair  Brick  Co    Detroit  Mich 

Land  contract. 

Standard  Sulphur  Corporation,  Detroit,  Mich 

States  Motor  Car  Mfg.  Co.,  Kalamazoo,  Mich 

Steel  Age  Mfg  Co    Battle  Creek  Mich 

Lease. 

Promotion. 

Patents. 

Superior  Ore  Milling  Corporation',  Hancock,  Mich 

Swan  Mfg.  Co.  Detroit  Mich   .    .                    ... 

Patents. 
Patents. 

Taite  Mfg  Co    Niles  Mich 

Secret  process  and  foruuilac. 

Options. 

Towar  Cotton  Mills  Inc.  Detroit  Mich 

Contract. 

United  Oil  Co.  of  Kentucky  Detroit   Mich 

Leases. 

Universal  Auto  Top  Co.,  Grand  Rapids,  Mich 

Utility  Compressor  Co.  Detroit  Mich   .... 

Patents. 
Patents. 

A  T  VanAlstyn  Co    Grand  Rapids  Mich 

Patents. 

Patents. 

West  Chapin  Mines  Co.,  Iron  Mountain,  Mich 

Williams  Iron  Co    Detroit  Mich 

Mining  leases. 
Contracts. 

5,248,9561 

$23,868,129 

STOCK  RELEASED  FROM  ESCROW. 


Name  of  company. 

Number 
shares. 

Amount. 

Purpose  and  consideration. 

300 
1,200 
9,000 
3,870 
10,000 
1,800 
13,750 
2,063 
2,250 
16,6.50 
2,. 373 
1,.3.50 
40.000 
150.001 
300 
245 

$.30,000 
12,000 
90,000 

3S7, 000 

100,000 
18,000 

137.  .500 
20.630 
22.. 500 

.333.000 

2.37. 300 
.      13.. 500 

400,000 

1.. 500. 010 

30.000 

24.. 500 

Promotion. 

Auto  Light  Control  Co.!  Grand  Rapids,  Mich 

Patents. 

Mailing  list  and  property. 
Issued  as  dividends. 

Canada  Mills  Co.,  Greenville,  Mich 

Detroit  Ball  Valve  Co    Detroit  Mich 

Patents. 

Detroit  Starter  Co    Detroit  Mich 

Patents. 

Ferndale  Cemetery  Association,  Wyandotte,  Mich 

Grand  Boulevard  Theatre  Co.,  Detroit,  Mich 

Gillette  Safety  Tire  Co.,  Grand  Rapids,  Mich 

Promotion. 

Le.ise  and  patents. 

Patents. 

Patents  and  property. 

LaBeil  Funeral  Motor  Car  Co.,  Detroit,  Mich 

Linderman  Steel  &  Machine  Co.,  Muskegon.  Mich. . . . 
The  Nyal  Company  Detroit  Mich                        .    . . 

Patent.s. 

Property  and  [Kilcnts. 

Trade  mark.s. 

Proraotion. 

Proiwrty. 

255, 152 

$3.355.W0 

66                                                          FIRST  REPORT  i 

i 

BULLETINS  ISSUED   BY  THE   MICHIGAN   SECURITIES  | 

COMMISSION.  i 

i 

Bulletin  No.  11,  with  Supplements.     (List  of  Companies  Approved  and  j 

Disapproved ;  Bond  Issues  Approved ;  List  of  Registered  and  Licensed  ! 
Dealers.) 

Bulletin  No.  12.     Copy  of  the  Law  (commonly  known  as  the  "BLUE 
SKY  LAW")  with  Rules  and  Regulations  of  the  Commission. 

These  Bulletins  are  compiled  with  the  view  of  informing  the  public  as  ] 

to  the  names  of  the  investment  companies  approved  and  disapproved  by  ] 

tlie  Commission  and  the  names  of  registered  and  licensed  dealers  who  | 

have  been  authorized  to  sell  securities  in  Michigan.    These  Bulletins  are  | 

for  distribution   to  the  investing  public  and  can   be  obtained   free  of  i 

charge  bv  addressing  the  MICHIGAN   SECURITIES   COMMISSION,  J 

LANSING,  MICH.  j 


iii 


582616 


UNIVERSITY  OF  CALIFORNIA  LIBRARY 


